Nvidia, Eli Lilly plan $1 billion AI laboratory to accelerate drug research

Nvidia Corp plans to invest $1 billion over five years in a new artificial intelligence-driven laboratory in partnership with Eli Lilly & Co, in a move aimed at accelerating the use of AI across the pharmaceutical research process, according to a Bloomberg report.

The facility will be built in Silicon Valley and is intended to bring Eli Lilly’s laboratory operations closer to the centre of global AI innovation, Nvidia informed on Monday. The chipmaker described the initiative as a joint investment but did not disclose detailed financial terms of the arrangement.

The collaboration is aimed at transforming drug discovery, a process that remains heavily dependent on human researchers carrying out physical experiments over long timelines. Nvidia expects AI systems to significantly reduce the time and labour required by automating large parts of this workflow.

The investment marks another example of Nvidia deploying its growing financial strength to cultivate new markets for its technology. The company, now the world’s most valuable corporation, dominates the market for AI accelerators, which are specialised chips used to train and run artificial intelligence models. However, a limited number of large technology firms currently account for a significant share of its revenues.

Nvidia has identified healthcare and pharmaceuticals as major growth opportunities for its AI platforms. While drugmakers have begun using AI-powered computers to identify promising drug candidates and compounds, these outputs still typically require validation through conventional laboratory experiments. Nvidia has stated that AI systems can automate much of this verification process.

The joint laboratory will enable AI engineers to gain hands-on understanding of laboratory equipment and research workflows. These engineers will then work with Eli Lilly to adapt computing systems and software so they can perform tasks traditionally handled by human researchers.

Beyond the new facility, Nvidia is expanding its portfolio of AI models and software agents designed specifically for healthcare applications and is making them open source, allowing broader experimentation and customisation across the industry.

The company is also collaborating with Thermo Fisher Scientific Inc to integrate laboratory equipment with Nvidia’s DGX Spark AI computer, enabling automated control of laboratory operations. In parallel, Nvidia is working with Multiply Labs to train robots in research procedures, with the long-term goal of creating fully automated research facilities.

The partnership positions Eli Lilly among the early adopters of AI-enabled drug discovery, a field that remains in its infancy and has yet to deliver major breakthroughs. The innovation lab will initially focus on drug discovery and the development AI models tailored to pharmaceutical research, the company informed.