Artificial Intelligence

DeepCyte Raises US$1.5M to Use AI and Single-Cell Analysis to Predict Drug Toxicity

A new approach examines how individual cells respond to drugs, aiming to identify risks earlier in development.

Updated

April 15, 2026 6:01 PM

Close up of a capsule blister pack. PHOTO: UNSPLASH

DeepCyte, a startup in the drug development space, is focusing on a long-standing problem: why drugs that appear safe in early testing still fail in clinical trials or are withdrawn later due to toxicity. DeepCyte has launched with US$1.5 million in seed funding to build tools that detect and explain the harmful effects of drugs at much earlier stages.

The startup’s approach focuses on how individual cells respond to a drug. Instead of analysing cells in bulk, it studies them one by one. This helps capture differences in how cells react, which are often missed in traditional testing methods.

Drug toxicity remains one of the main reasons for failure in drug development. Methods such as animal testing and bulk cell analysis do not always reflect how human cells behave. This gap has pushed the industry to look for more reliable and human-relevant ways to test drug safety.

DeepCyte combines cell-level data with artificial intelligence. Its platform, MetaCore, studies what is happening inside individual cells by capturing detailed molecular information. This data is used to build large datasets that can train AI models.

Additionally, the company has developed an AI system called DeeImmuno. It is designed to predict whether a drug could be toxic and identify the biological reasons behind it. In internal testing on 100 drugs, the system identified different types of toxicity and their underlying mechanisms with a reported accuracy of 94 percent.

The focus on explaining why a drug is toxic, not just whether it is, reflects a broader shift in the industry. Regulators such as the U.S. Food and Drug Administration and the European Medicines Agency have been encouraging methods that rely more on human cell data and clearer biological evidence. The seed funding will be used to develop and scale these tools. The company aims to help drug developers make earlier decisions, which could reduce costly failures in later stages. Whether tools like this become widely used will depend on how they perform in real-world settings. For now, DeepCyte’s approach highlights a growing effort to make drug testing more precise by focusing on how drugs affect cells at the most detailed level.

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Health & Biotech

OpenAI and Top Investors Back Valthos with US$30M to Advance AI-Driven Biodefense

Reimagining biodefense at the intersection of AI, biology and urgency.

Updated

January 8, 2026 6:34 PM

Through computational tools, Valthos analyzes biological data to design adaptive solutions against emerging threats. PHOTO: VALTHOS

Valthos has raised US$30 million in seed funding, led by the OpenAI Startup Fund, Lux Capital and Founders Fund, to advance its mission of building next-generation biodefense systems.

The company’s work comes at a time when biotechnology is evolving at an unprecedented pace. Biotechnology is moving at record speed. These new tools can lead to life-changing medical discoveries, but they also bring the risk of dangerous biological agents being developed faster than ever.  

“The issue at the core of biodefense is asymmetry”, said Kathleen McMahon, co-founder of Valthos. “It’s easier to make a pathogen than a cure. We’re building tools to help experts at the frontlines of biodefense move as fast as the threats they face”. The gap Valthos aims to close is between the rapid rise of biological threats and the slower pace of developing cures. Therefore, the company is developing AI systems that can rapidly analyze biological sequences and significantly shorten the time needed to design medical countermeasures.

“In this new world, the only way forward is to be faster. So we set out to build a new tech stack for biodefense”, said Tess van Stekelenburg, co-founder of Valthos. “This software infrastructure strengthens biodefense today and lays the groundwork for the adaptive, precision therapeutics of tomorrow”.

The company was founded by van Stekelenburg, a partner at Lux Capital and McMahon, the former head of Palantir’s Life Sciences division. Together, they’ve built a multidisciplinary team of experts from Palantir, DeepMind, Stanford’s Arc Institute and MIT’s Broad Institute, bringing together deep experience in software engineering, machine learning and biotechnology.

“Technology is moving fast. An industrial ecosystem of builders, companies and solutions further democratizes AI to provide broad resilience, and ensures the U.S. continues to lead as AI increasingly powers everything around us. As AI and biotech rapidly advance, biodefense is one of the new industry verticals that helps maximize the benefits and minimize the risks”, said Jason Kwon, OpenAI’s Chief Strategy Officer. “Valthos is pushing the frontier of protection and defense in one of the most strategic intersections of multiple world-changing technologies, and with the team to do it”.

Looking ahead, Valthos plans to expand its engineering team and scale its software infrastructure for both government and commercial partners — moving closer to its goal of enabling faster, smarter and more adaptive biodefense capabilities.