Bovine scapular and articular chondrocytes were isolated from fresh cartilage and disrupted by sonication. The disrupted cells had the ability to stimulate DNA synthesis and cell division in vitro in chondrocytes and in 3T3 cells. Subcellular fractions were prepared by two methods, enucleation with cytochalasin B and lysis of cells with Nonidet P-40. After enucleation of chondrocytes, karyoplasts and cytoplasts were collected, disrupted by sonication, and tested for their ability to stimulate DNA synthesis. Over 95% of the cellular growth factor activity was localized in the karyoplast. In addition, after lysis of chondrocytes in Nonidet P-40, over 95% of the growth factor activity was recovered in the nuclear fraction. Chondrocyte chromatin was prepared by low ionic strength detergent treatment of karyoplasts. All of the growth factor activity of the karyoplast was found to be associated with chromatin. The growth factor activity of chondrocytes, cytoplasts, karyoplasts, and chromatin was analyzed by gel filtration on Bio-Gel A-0.5 m equilibrated with 4 M guanidine'HCI and 5 mM dithiothreitol. Chondrocytes, chondrocyte karyoplasts, and chondrocyte chromatin had similar column elution profiles, with molecular weights in the range of 12,000-22,000.A growth factor that stimulates DNA synthesis and cell division in BALB/c 3T3 cells and in chrondocytes can be extracted from cartilage with guanidine-HCl (1). Purification of the growth factor indicates that it has a molecular weight between 16,000 and 17,000 and an isoelectric point between 9 and 10 (unpublished data). Growth factor activity can also be obtained from chondrocytes. A homogeneous cell population of chondrocytes can be prepared by digesting cartilage with collagenase and separating the cells from the extracellular matrix by centrifugation. Growth-promoting activity is released by sonication of chondrocytes or by collection of medium conditioned by chondrocytes that have been cultured in the absence of serum. Thus, the cartilage-derived growth factor is probably an endogenous polypeptide that is synthesized by the chondrocyte.The subcellular origin of most growth factors is unknown. One exception is the platelet-derived growth factor, which is found within the a granules of platelets (2). However, platelets are atypical cells because they contain no nuclei. The presence of the cartilage-derived growth factor in chondrocytes affords a unique opportunity to study the localization of a growth factor within a nucleated cell. Cells were fractionated by two methods, enucleation of cells with cytochalasin B and lysis of cells with Nonidet P-40. The cytochalasin B method of fractionating cells was chosen because of reports that detergent lysis of cells sometimes leads to leakage of proteins from one cellular compartment to another. For example, by a detergent method, DNA polymerase is found in the cytoplasm. However, by the cytochalasin B technique, this enzyme activity is found to be associated with the nucleus (3). The cytochalasin B technique has the a...