Roche agreed to acquire PathAI for up to $1.05 billion to strengthen its digital pathology capabilities and integrate AI into diagnostics and biopharma workflows. Under the deal terms, Roche will pay $750 million upfront and up to $300 million in milestone payments, with a planned close in the second half of 2026 subject to regulatory approvals. The acquisition follows years of partnership, including a 2024 expansion into AI-enabled companion diagnostic algorithm development. PathAI technology includes its Image Management System (IMS), designed to connect analysis with lab workflow execution, and the company also supports clinical trial and translational programs. Roche said it intends to merge PathAI into its Diagnostics division and scale the platform globally. The move positions Roche to compete as more pharma and diagnostics teams attempt to operationalize AI within pathology labs, rather than treat it as a standalone tool.