• Fri. Jul 19th, 2024

Google Backs Tempus AI: Impressive Stock Market Debut for Emerging AI Company

ByMichael Brown

Jun 17, 2024

Tempus AI’s Strong Market Debut

• Focus: Using AI for Processing Medical Data • Prominent Investors Onboard

Tempus AI made a strong entrance onto the stock market on Friday, impressing investors from the start. The initial offering price was raised from $35 to $37 USD, with the first trade marked at $40 USD. Throughout the trading session, the share price increased by as much as 15%, ending the day with an 8.78% gain at $40.25 USD. By Monday, in pre-market trading on NASDAQ, Tempus AI’s share price rose an additional 5.47% to $42.45 USD.

Prominent Investors Onboard

According to Reuters, citing PitchBook data, the company founded in 2015 has attracted several notable investors. Besides Alphabet’s subsidiary Google, investment firms Franklin Templeton and T Rowe Price have stakes in Tempus AI. Reuters also reported that Softbank is among its investors.

AI for Medical Data

Tempus AI is a technology platform company that uses artificial intelligence (AI) to process medical data. According to the company, Tempus AI possesses one of the world’s largest libraries of clinical and molecular data, along with an operating system that makes this data accessible and usable. This allows doctors to make data-driven decisions in near real-time to provide personalized patient care. Additionally, Tempus facilitates the discovery, development, and delivery of optimal therapeutics.

In a phone interview quoted by Bloomberg, Eric Lefkofsky, the founder and CEO of the company, stated that the positive reception of the stock is due to the realization that there are incredible background technologies, including generative AI and large language models, which are finally bringing technology into healthcare. Lefkofsky further expressed that it is “somewhat sad” that healthcare has not adopted technology as quickly as other industries, especially given the number of patients suffering as a result.

AI Stocks in Hype

AI stocks have experienced a significant hype in the financial markets over the past months. Besides the most prominent example, NVIDIA, and other AI chip manufacturers, companies from various sectors with an AI connection have also performed strongly in the stock market. With Tempus AI, investors now have a new option to consider. Whether the IPO hype will continue to drive the stock remains to be seen.