The AI company's Series E was led by a large pharmaceutical company rather than a venture fund. EQT Ventures led a $70 million round for Nevis, and Tractian raised $130 million at a $1.4 billion valuation.
A drugmaker wrote the lead check for a $237 million venture round on Monday.
Pathos AI raised $237 million in a Series E round at a post-money valuation of about $3 billion, according to the company. Bristol Myers Squibb led the round.
Strategic money at a late stage
A pharmaceutical company leading a late-stage round is a different signal from a venture fund doing so. A strategic investor is usually buying access as well as returns: to the company's technology, its data or its pipeline. The terms of any commercial relationship between Pathos and Bristol Myers Squibb were not disclosed.
For Pathos, a lead investor that runs its own large research operation is a form of validation that a purely financial investor cannot offer.
Elsewhere in venture
Two other rounds announced Monday showed growth investors still writing sizable checks. Nevis raised a $70 million Series B led by EQT Ventures, with Schwab and QuantumLight participating. Tractian raised $130 million in a Series D at a $1.4 billion valuation, according to a funding report.
Two readings
One reading is that strategic investors are moving to secure AI capabilities through late-stage stakes, and are willing to pay late-stage valuations to do it.
The other is that a $3 billion valuation set by a strategic lead may rest heavily on the value that one investor sees, and that pricing will be tested if Pathos needs to raise again from financial investors.
What to watch
Any disclosed collaboration between Pathos and Bristol Myers Squibb, how the new capital is deployed in Pathos's programs, and further pharmaceutical-led rounds in AI companies.