Nvidia and Eli Lilly Commit $1 Billion Over Five Years for Joint Research Lab

• Eli Lilly is already using more than 1,000 of Nvidia's current generation Grace Blackwell AI chips for drug development
• The companies did not disclose whether Nvidia's investment would flow to Lilly to purchase Nvidia chips, a circular arrangement that has raised questions about other Nvidia investments
• Nvidia released new AI models including one for ensuring AI-designed drugs are practical to synthesize in real-world labs, as part of its strategy to supply foundational models for drugmakers' platforms

Summary: Nvidia and Eli Lilly $1 Billion Joint Research Lab

Key Announcement:

Nvidia and Eli Lilly have committed $1 billion over five years to establish a joint research laboratory in the San Francisco Bay area. The facility will leverage Nvidia's next-generation Vera Rubin AI chips for pharmaceutical research and development.

Key Details:

• The partnership was announced during a weeklong San Francisco event on Monday, January 12
• Facility location to be revealed in March
• Researchers from both companies will collaborate onsite to generate new data for training biotechnology AI models
• Both firms are contributing "incremental resources" to the new facility

Previous Collaboration:

Eli Lilly, manufacturer of Zepbound, is already utilizing over 1,000 of Nvidia's current-generation Grace Blackwell AI chips, demonstrating an existing technology relationship between the companies.

Strategic Context:

Lilly joins a growing number of pharmaceutical companies leveraging AI to accelerate drug design and discovery, aiming to reduce time-to-market for new treatments. Nvidia, currently the world's most valuable listed company, is pursuing a biotechnology market strategy of providing AI models that drugmakers can use to build proprietary drug development platforms on Nvidia hardware.

Product Updates:

Nvidia released several new AI models alongside the announcement, including an updated version designed to ensure AI-designed drugs are practically synthesizable in real-world laboratory settings.

Financial Structure:

The companies did not disclose whether Nvidia's investment would flow to Lilly for purchasing Nvidia chips—a circular arrangement that has raised questions regarding other Nvidia investments.