Recursion Pharmaceuticals Inc shares surged 64% to $11.09 in late-morning trading on Wednesday after NVIDIA Corp announced it is making a $50 million investment to accelerate training of the biotech company's artificial intelligence (AI) models for drug discovery.
Recursion stated that it will train AI models on NVIDIA's cloud platform using its own biological and chemical datasets exceeding 23,000 terabytes, which it can then potentially license out to biotech firms via BioNeMo, a generative AI cloud service for drug discovery that NVIDIA launched earlier this year, Reuters reported.
Recursion said its searchable data set spanning biology and chemistry has an algorithm that can identify relationships between trillions of genes and compounds on targets “unconstrained by human bias.”
In May, Recursion acquired two companies in the AI-driven drug discovery space for a total purchase price of $87.5 million.
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