NVIDIA's Ambition Goes Beyond Chips to Promote AI+Healthcare

NVIDIA has announced agreements with Johnson & Johnson $Johnson & Johnson(JNJ.US)$ to use generative artificial intelligence (AI) in surgery and with GE Healthcare to improve medical imaging. At its GTC Artificial Intelligence Conference 2024, NVIDIA's developments in healthcare - which also included the launch of some 24 new AI healthcare tools - demonstrated how important healthcare is to NVIDIA's future revenue opportunities in non-technology areas .

With NVIDIA's shares up nearly 100 percent so far this year, the biotech sector is an example of untapped potential that investors continue to bet on. Artificial intelligence can speed up the process of drug development and even discover uses for drugs that may not be effective for the disease they were originally developed to target.

Ural points out that drug development is a risky process, taking at least 10 years from concept to clinical studies. It's also a multi-billion dollar process with a high likelihood of failure. About 41 percent of biotech CEOs surveyed by Ernst & Young at the end of 2023 said they were looking for "concrete" ways to use generative AI in their companies, Ural said: "In my 30 years of experience in the industry, that's a very high percentage. It's very high. It's a very unique feature that we're seeing in AI, and it's evolving at a much faster rate than other technologies."

NVIDIA's focus on healthcare at its conference is an expansion of its long-standing ambitions. In an earnings call with investors in February, NVIDIA mentioned several ways to apply its technology to healthcare.Companies like Recursion Pharmaceuticals and Generate: Biomedicines have been expanding their biomedical research with the help of hyperscale or GPU-specialized cloud providers, and they need NVIDIA's AI infrastructure to facilitate this process. $NVIDIA(NVDA.US)$