Advanced Micro Devices (AMD) is one of the leading tech stocks in the industry, especially in artificial intelligence (AI). A recent investment by the company though shines a light on a different AI stock to watch this week. AMD recently invested $20M into AI drug creation company Absci Corporation to assist in AI drug discovery capabilities.

The two companies have established a partnership that will leverage AMD Instinct accelerators and ROCm software to support Absci’s advanced de novo antibody design models. The $20M PIPE investment from AMD proves the rising importance of AI implementation in the pharmaceutical industry. AMD, which is based in Santa Clara, California said the investment and partnership between the two companies will help reduce hardware costs and optimize AI solutions for Absci.

AMD Looks to Catch up with Nvidia, Establishes AI Partnership in Pharmaceuticals

As AMD continues to compete with Nvidia in the AI stock realm, this latest investment aims to establish footing for its AI chip technology in the drug industry, something Nvidia has yet to do. While the move hasn’t been big yet for AMD stock in investors’ eyes, the hefty investment has bode well for Absci stock. ABSI shares traded higher by 44.3% at $4.46 in premarket and are currently up 6.3448% in the last 24 hours to $3.27 after a price correction.

Also Read: eBay Stock (EBAY) Surges After Latest Meta Facebook Integration

Mark Papermaster, AMD’s chief technology officer, said its relationship with Absci is the first of many efforts to make its graphics processing units, or GPUs, available to certain industries. “We’re now expanding our focus into vertical markets and prioritizing healthcare, where we can immediately have an impact on society,” Papermaster said.

“At Absci, we are always looking for ways to push the boundaries of what’s possible in drug discovery,” said Sean McClain, Founder & CEO of Absci. “This partnership with AMD gives us the unique advantage of working closely with a partner that is deeply committed to supporting our needs while providing the most efficient, innovative AI solutions available. AMD high-performance compute will enable us to further the development of next-generation antibody therapeutics, and we are excited about the potential that this partnership holds to accelerate the future of drug discovery.”