NVIDIA and Eli Lilly announced a joint $1 billion initiative to build an AI-powered drug discovery laboratory in the San Francisco Bay Area. The partnership will combine NVIDIA’s compute and generative AI infrastructure with Lilly’s drug discovery pipelines to accelerate target identification, biologics design and preclinical candidate selection. Company statements indicate the lab will support multiple discovery programs rather than a single asset, marking a platform-style investment aimed at shortening early-stage timelines. The deal signals major tech–pharma convergence: NVIDIA brings GPU-powered modeling and infrastructure while Lilly supplies proprietary datasets and therapeutic expertise. Executives on both sides framed the lab as a long-term platform play that could raise hit rates for hard targets and reduce reliance on traditional screening funnels. For investors and R&D leaders, the collaboration underscores a shift from point collaborations to large, co‑owned AI discovery infrastructure.