Xaira’s billion dollar raise fuels hype - and hope - for AI-led drug discovery

At a cool $1 billion, the venture round secured by AI group Xaira ranks as the second-biggest raise in biotech history. In the drug discovery space, this financing is dwarfed only by Altos Lab’s $3 billion, amassed back in 2021.

Xaira’s funding success is yet another signal of pharma’s growing interest in AI-led drug discovery. The day after Xaira exploded out of stealth mode with its huge cash pile, Moderna (Nasdaq: MRNA) announced further details of its partnership with OpenAI, the founders of Chat GTP. Last year, BioNTech (Nasdaq: BNTX) acquired AI drug discovery group InstaDeep for £362 million ($453 million) upfront, and Eli Lilly (NYSE: LLY) signed a $250 million collaboration with XtalPi.

The A-team