Hello, Reader.
Ian Fleming wrote in his 1958 James Bond novel Goldfinger…
“Mr. Bond, they have a saying in Chicago: ‘Once is happenstance. Twice is coincidence. The third time it’s enemy action.”
Well, on Sunday, August 3, we received word of a scientific “coincidence.”
That’s when Elon Musk’s Neuralink company said it had successfully implanted one of its N1 chips in the brain of a second paraplegic patient. According to Neuralink, the N1 interprets neural activity and makes it available for computers. Then, the person can control external devices with their mind, alone.
Musk and his team of researchers and engineers call this “electrophysiological recording.”
According to Musk, Neuralink initially aims to restore mobility in paralyzed people, with subsequent goals of restoring sight to the blind and hearing to the deaf. In short, the N1 device could benefit millions of people with miracle-like cures.
If things go as Musk’s team predicts, the paralyzed will walk, the blind will see, and the deaf will hear. You can read more about Neuralink’s implant experiment, called PRIME, here.
Until now, Neuralink’s N1 chips have only seen “happenstance”… or what we might call “luck.”
Back in January, one of Musk’s R1 robots implanted the first N1 device in the brain of a quadriplegic patient… and it worked. The patient could play chess online and browse the internet with only his mind.
I certainly don’t blame you if you remain unconvinced of Musk and his Neuralink miracle-like claims. It still sounds pretty unbelievable to me.
After all, we’re still on the lookout for “enemy action.”
Now, investors have a saying similar to Fleming’s. It has plenty of variations but usually goes something along the lines of…
“Once is chance, twice is coincidence, three times is a trend.”
I’m sure you’ve found yourself saying, “Third time’s the charm.”
Before we go all in on an investment, like Neuralink, we want confirmation of a trend. We want proof.
So, in today’s Smart Money, I’ll give you an example of proof of a trend in the healthcare industry.
Then, we’ll discuss where these N1 chips and other such innovations might take us next on the Road to Artificial General Intelligence (AGI)…
Looking for “Enemy Action”
The healthcare industry is witnessing a groundbreaking trend: the integration of artificial intelligence – something I’ve been following and reporting on here at Smart Money. Neuralink’s PRIME experiment, of course, is major step in connecting healthcare and AI.
However, this “biotech gold rush,” is also evident through the actions of big pharma companies that are actively acquiring AI-focused firms to revolutionize drug discovery and accelerate innovation across the entire healthcare value chain.
Bristol-Myers Squibb Co. (BMY) serves as a prime example of this trend, demonstrating both the potential and challenges of AI adoption.
Bristol-Myers is one of the largest pharmaceutical companies in the world, with a number of drugs that treat diseases in immunology, cardiovascular, and oncology. This portfolio includes blockbuster drugs like Eliquis, a blood anticoagulant for stroke patients, and Opdivo, used for the treatment of advanced-stage non-small cell lung cancer.
Bristol-Myers CEO Chris Boerner insists that the company’s highly profitable “legacy cash-generating portfolio” will continue generating ample cash, while the company bulks up its drug portfolio to become “one of the fastest-growing companies in the sector by the end of the decade.”
To achieve that goal, the pharmaceutical giant has been rapidly expanding its roster of AI collaborations. Earlier this year, for example, the company struck a new AI partnership with VantAI.
This $674 million drug discovery deal will focus on using VantAI’s generative AI (GenAI) platform to design and develop molecular glues – a type of small molecule that induces or stabilizes interactions between two proteins that would not normally go together.
Prior to this deal, Bristol-Myers struck AI collaborations with…
- PathAI, to utilize AI-powered pathology in translational research and clinical trials.
- Owkin, to use that company’s AI platform to help design and execute clinical trials for Bristol-Myers’ cardiovascular drug candidates.
- Exscientia PLC (EXAI), a pioneer in using AI to precision-engineer drugs, to develop and commercialize one of that company’s most promising therapies.
- And Terray Therapeutics Inc. (TGTX), to use generative AI to discover and develop small molecule compounds against various disease targets that Bristol-Myers selects.
Bristol-Myers strategic AI-focused acquisitions showcase its commitment to the AI healthcare trend, albeit with some financial setbacks.
Despite a $12.1 billion write-off – which signaled concerns from Wall Street – BMY’s second-quarter report beat expectations, coming in at $2.07 earnings per share and $12.2 billion in revenue.
Bristol-Myers is one of the pharma industry’s leaders in inking lucrative partnerships, and I believe that its dominant oncology portfolio gives it an enormous edge in developing future cancer therapies.
Perhaps Bristol might someday even build on Musk’s Neuralink efforts with cancer-saving nanobots.
While facing patent expirations and a wait for AI drug discovery payoffs, BMY’s current valuation of 7.3 forward earnings suggests potential for investors who recognize the long-term value of AI in healthcare.
Bristol’s actions illustrate how major players in the healthcare industry are not just dabbling in AI, but also making significant investments and strategic decisions based on its potential to innovate and transform the sector.
Get Ready for Transformative Change
Beyond healthcare AI… we’re also seeing innovations in artificial general intelligence (AGI).
Musk has even stated that AGI is “capable of vastly more than anyone knows, and the rate of improvement is exponential.”
This rapid evolution of AI poses profound questions about the role of humanity. In a recent 8.5-hour-long interview between Musk and the Neuralink team and computer scientist/podcaster Lex Friedman, Musk suggested in that “there is some argument for humans as a source of will” as these technologies advance. And Neuralink’s brain-computer interface devices, he suggests, represent a step toward bridging the gap between human cognition and machine intelligence.
So, the relentless march of technological progress continues, fueled by visionaries like Musk.
The convergence of AI, neurotechnology, and other transformative fields points the way toward AGI – a development that could drastically alter the human condition… and life as we know it.
I’ll delve deeper into the “Road to AGI” soon with special video event and a series of reports for members of my elite trading service The Speculator.
Stay tuned. This presentation is coming up next week… and you should get your invite to it as soon as this Friday.
Regards,
Eric Fry
P.S. I’ve been telling you I’m putting together a presentation and a number of special reports on AGI.
And I want to know what you think.
What do you want to see me talk about during that presentation? What do you know about AGI… and what do you want to know more about? You can send your feedback to ericfryfeedback@investorplace.com.
