Nvidia and Eli Lilly announced a five-year, up-to-$1 billion co-investment to build an AI-focused drug discovery lab in San Francisco. The collaboration will place Nvidia engineers alongside Lilly biologists to generate large-scale data, build models, and deploy compute and talent for accelerated target identification and molecule design. Lilly CEO David Ricks and Nvidia CEO Jensen Huang framed the effort as an infrastructure play to compress discovery timelines and scale in-house AI capabilities. The lab expands earlier Nvidia–Lilly ties and follows broader industry moves to pair chip makers with big pharmas for research compute. The partners say spending will cover infrastructure, compute and hires over five years; work will begin early this year. For drug developers and vendors, the deal signals continued consolidation of AI compute and proprietary biological data under large strategic partnerships, shifting expectations on internal discovery timelines and vendor roadmaps.