AI drug discovery startup Pathos AI has closed a $237 million Series E round led by Bristol Myers Squibb, valuing the New York company at about $3 billion. Existing investors also participated in the round, which will fund further development of Pathos’ AI-driven drug pipeline.
The financing was announced alongside a strategic collaboration between Pathos, Bristol Myers Squibb, and Tempus AI focused on Alzheimer’s disease and other neurological disorders. Under the deal, Tempus will build a dataset from hundreds of thousands of patients with neurological conditions, which Pathos will license under a five-year, $55 million agreement.
Pathos will apply its Pathos Foundry platform to study the dataset at scale, generate and test hypotheses about disease biology, and design more targeted, adaptive clinical trials. Bristol Myers Squibb gains non-exclusive access to the Foundry platform across its broader portfolio, plus three-year exclusive rights to use it for its neuroscience development programs.
Proceeds from the round will go toward scaling the Foundry platform and advancing Pathos’ experimental pipeline, including the cancer drug candidate JSKN016 and an AstraZeneca-partnered experimental breast cancer program. The deal underscores how AI is moving deeper into regulated drug development, with pharma giants betting directly on AI platforms — and researchers experimenting with open-weight models on Hugging Face or running models privately with Ollama. Explore more AI tools in our AI tool finder.
Source: Reuters via KTWB
