In 2023 and 2024 through the end of Q3, AI and machine learning (ML) drug discovery companies have secured $490 million in upfront payments across 110 announced deals, generating an estimated $20.9 billion in value, according to data from DealForma. The IPO activity in the AI/ML life sciences sector has also seen a notable increase, with five IPOs in 2024, including XtalPi on the Hong Kong Stock Exchange, compared to just one in 2023. Over the past two years, these six IPOs collectively raised $2.1 billion. Additionally, venture funding for AI/ML-enabled drug discovery has risen, with 175 rounds securing $5.7 billion by Q3 2024, compared to 164 rounds raising $4.4 billion in 2023. Notably, in April 2024, Xaira Therapeutics announced over $1 billion in venture capital funding, and Formation Bio secured $372 million in a Series D round in June. The leading partnerships in AI-enabled drug discovery for 2024 include AbbVie and NYC-based Gilgamesh, which received $65 million upfront with potential for up to $2 billion later for developing AI-driven neuroplastogen therapies for psychiatric disorders, and Lilly with Isomorphic Labs, which received $45 million upfront and could reach $1.7 billion later for exclusive rights to AI-driven drug discovery. The sector is also witnessing an increase in mergers and acquisitions, with Recursion Pharmaceuticals leading the charge.