Why Recursion Pharmaceuticals Stock is Skyrocketing Today?

Recursion Pharmaceuticals Inc RXRX shares are trading higher after the company announced a $50 million investment by NVIDIA Corporation NVDA, executed as a private investment in public equity. 

Recursion also announced plans to accelerate the development of its AI foundation models for biology and chemistry, which, in collaboration with NVIDIA, it intends to optimize and distribute to biotechnology companies using NVIDIA cloud services.

"With our powerful dataset and NVIDIA's accelerated computing capabilities, we intend to create groundbreaking foundation models in biology and chemistry at a scale unlike anything that has ever been released in the biological space," said Chris Gibson, Co-founder & CEO of Recursion. 

Recursion plans to utilize its vast proprietary biological and chemical dataset, which exceeds 23 petabytes and 3 trillion searchable gene and compound relationships, to accelerate the training of foundation models on NVIDIA DGX Cloud for possible commercial license/release on BioNeMo, NVIDIA's cloud service for generative AI in drug discovery. 

NVIDIA will also help optimize and scale Recursion foundation models leveraging the NVIDIA AI stack and NVIDIA's full-stack computing expertise. 

In May, Recursion signed agreements to acquire two companies in the AI-enabled drug discovery space: Cyclica and Valence, for $40 million and $47.5 million, respectively.

Price Action: RXRX shares are up 79.70% at $12.18 on the last check Wednesday.