Why Nvidia Invested in RXRX
1. Deep AI Integration for Drug Discovery
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In July 2023, Nvidia invested $50 million via a PIPE deal to help Recursion accelerate training of AI models for drug discovery. This investment boosted RXRX stock by about 83% immediately Reuters
Nvidia provided cutting-edge GPUs and access to its BioNeMo generative-AI cloud platform so Recursion could train models on its massive biological dataset MarketWatch+2.
2. Equity Stake & Strategic Synergy
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Nvidia now holds over 7.7 million shares—approximately a 3–4% stake—making Recursion one of its top non-core holdings The Times+11
This aligns with Nvidia’s broader strategy of investing in AI-first companies that complement its hardware, not just selling chips.
3. Accelrating RXRX’s Supercomputer Ambitions
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Recursion built BioHive‑2, a supercomputer powered by Nvidia’s DGX H100 GPUs. It delivers a 4x speed increase over their prior system, enabling faster model training Reuters+2T
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This partnership helps validate Nvidia hardware in high-performance biotech applications—which can drive future sales to pharma partners.
🏥 Broader Vision: Redefining Pharma with AI
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Recursion uses AI, automation, and robotics to develop drugs more quickly and affordably. Its platform includes the “virtual cell” paradigm and is backed by major pharma companies like Bayer and Roche Investors+14.
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Analysts project RXRX revenue growing at a ~65–73% CAGR through 2027—significantly above typical biotech growth—with Nvidia’s backing lending extra credibility The Motley Fool+5
✅ Summary
Nvidia's investment in RXRX is twofold:
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Financial Buy-In – it gains exposure to a high-growth biotech using AI and fosters long-term capital appreciation.
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Strategic Alignment – Nvidia deepens integration of its AI stack (hardware + BioNeMo) in the drug discovery workflow, while demonstrating its systems’ performance in real-world pharma applications.
It’s part of a broader strategy of deploying capital into AI-first companies that can both benefit from and validate Nvidia’s ecosystem, accelerating adoption across industries.
Here are the top ten institutional investors in Recursion Pharmaceuticals (RXRX), based on the most recently reported 13F filings (as of March 31, 2025) and aggregated data sources Yahoo Finance+12:
🏦 Top 10 Institutional Holders of RXRX
Ranked by percentage ownership:
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ARK Investment Management LLC — 8.66% (~34.8M shares; ~$184 M)
Vanguard Group Inc. — 8.03% (~32.3M shares; ~$171 M)
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Lux Ventures IV LP — 7.46% (~30.3M shares; ~$194 M)
- Baillie Gifford & Co. — 6.07% (~24.4M shares; ~$129 M)
BlackRock Inc. — 5.78% (~23.5M shares; ~$150 M)
SoftBank Group Corp. — 3.61% (~14.7M shares; ~$94 M)
Kinnevik AB (publ) — 3.30% (~13.4M shares; ~$86 M)
State Street Corp. — 3.22% (~13.1M shares; ~$84 M)
Mubadala Investment Co. PJSC — 3.19% (~13.0M shares; ~$83 M)
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Novo Holdings A/S — 2.38% (~9.7M shares; ~$62 M)
🧾 Summary Table
| Investor | % Ownership | Approx. Shares |
|---|---|---|
| ARK Investment Management LLC | 8.66% | ~34.8 M |
| Vanguard Group Inc. | 8.03% | ~32.3 M |
| Lux Ventures IV LP | 7.46% | ~30.3 M |
| Baillie Gifford & Co. | 6.07% | ~24.4 M |
| BlackRock Inc. | 5.78% | ~23.5 M |
| SoftBank Group Corp. | 3.61% | ~14.7 M |
| Kinnevik AB (publ) | 3.30% | ~13.4 M |
| State Street Corp. | 3.22% | ~13.1 M |
| Mubadala Investment Co. PJSC | 3.19% | ~13.0 M |
| Novo Holdings A/S | 2.38% | ~9.7 M |
💡 Key Insights
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Institutional investors control around 75% of RXRX's outstanding shares Nasdaq+
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ARK and Vanguard are the two largest, with each holding over 8% of the company.
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Lux Ventures IV LP—a prominent insider-linked investor—is effectively the third-largest stakeholder at ~7.5%.
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Other heavyweights include Baillie Gifford, BlackRock, SoftBank, and sovereign/strategic holders like Mubadala and Novo Holdings.
Here’s a breakdown of the recent moves by institutional investors in RXRX:
📈 Increased Positions (Recent Quarter)
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UBS Asset Management Americas (UBS AM) added 4.15M shares (+183.7%) in Q1 2025 (~$22M) MarketBeat+
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UBS Group AG boosted its stake by 2.57M shares (+85.4%) (~$13.6M)
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According to CapEdge filings (as of July 22, 2025):
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KLP Kapitalforvaltning AS increased by +20% (~61K shares)
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Steel Peak Wealth Management up +21% (~85K shares)
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Prime Capital Investment Advisors boosted by +61% (~30K shares)
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IMC‑Chicago surged +76% (~284K shares)
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📉 Reduced or Exited Positions
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RA Capital Management, L.P. fully exited its position, selling 7.73M shares (~$41M) in Q1 2025
CapEdge data shows QRG Capital Management reduced its holding by 32% (~19K shares) as of July 21, 2025
🔍 Additional Context
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Total institutional inflows over the past 24 months reached significantly more than outflows:
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83.2M shares purchased (~$550M)
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18.3M shares sold (~$117M) MarketBeat
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This reflects overall upward interest, but pockets of profit-taking and rotation remain.
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Other Q1 fourth-quarter buyers included firms like Brighton Jones, Victory Capital, and Private Advisor Group, while sellers included RA Capital prominently MarketBeatMarketBeat.
✅ Summary
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UBS (both global and Americas units) made the largest scale-ups recently.
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RA Capital initiated the most substantial reduction, liquidating its entire stake.
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Mid-cap managers like KLP, Steel Peak, Prime Capital, and IMC‑Chicago also significantly expanded their RXRX positions.
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Some smaller managers, including QRG Capital, reduced or trimmed their positions.
- ED Note: We are long RXRX
