The $20 million deal gives the chip supplier a toehold in the life-sciences market, a strategy it plans to replicate in other industries.

Chip maker AMD is investing $20 million in AI drug startup Absci, which will use AMD chips and software for drug development.

Absci will use AMD’s $20 million investment to enhance its AI models. In parallel, the companies will collaborate to develop new hardware and software optimized for the healthcare sector. The effort will place particular emphasis on developing technologies that can advance drug discovery.

AI drug creation company Absci Corporation (NASDAQ:ABSI) shares are trading higher in premarket on Wednesday after the company entered into a strategic collaboration with Advanced Micro Devices Inc (NASDAQ:AMD) to enhance its AI drug discovery capabilities.