Welcome to See King Alpha's Wall Street breakfast, where we cover the top news for investors every morning.

Good morning, today is Tuesday, September 5th.

Hopefully you enjoyed your extended weekend. I'm your host Julie Morgan.

Morgan Stanley says AI will represent nearly 11% of health care budgets in 2024.

Tama Bravo is reportedly in advanced talks

to purchase next-gen health care,

and a weight loss pill by Nestle is having success.

Here's what's making headlines today. According to Morgan Stanley, the budgetary allocation to artificial intelligence

and machine learning in the health care sector is expected to reach 10.5% in 2024. That's up from 5.5% in 2022. Recursion Pharmaceuticals is an AI-led drug discovery company. In July, recursion surged after receiving a $50 million investment from chipmaker

Invidia. Recursion's rivals, including Absalera Biologics, among others, also rallied in reaction.

Morgan Stanley argues that the potential use of AI

and machine learning could be transformational

for the health care sector and will not

be limited to drug discovery.

Citing a recent survey, the bank noted that 94% of health care companies employ at least some form of artificial

intelligence and machine learning, and only 24% of medical devices currently leverage that technology.

According to Morgan Stanley, when it comes to AI and ML applications, health care investors should specifically focus on four key areas.

Life Sciences, tools and diagnostics, medical technology,

bio-pharma, and health care services and technology.

Private equity firm Tama Bravo is in advanced discussions to acquire next-gen health

care. Next-gen is a patient record software provider.

According to a Bloomberg report out on Monday, which cited people familiar with the situation,

...