The first batch of generative AI application companies went public, with "medical diagnosis" Tempus AI rising nearly 9% on its first day of trading

One of the first companies focusing on AI healthcare has gone public.

On June 14th, Eastern Time, the Nasdaq stock market welcomed a medical diagnostics company named "Tempus AI" with the stock code "TEM". In 2023, the company achieved total revenue of $5.318 billion, but incurred a net loss of $2.141 billion.

On its first day of trading on Friday, Tempus AI's stock price performed strongly, surging by 15% at one point. By the end of the day, the market value reached approximately $6.65 billion, rising nearly 9% from the IPO price. The company successfully issued 11.1 million shares at $37 per share on Thursday, raising approximately $410 million.

According to the prospectus, Tempus AI aims to develop personalized intelligent diagnostics through the use of AI and data analysis, thereby building a more optimized and information-based healthcare industry. Specifically, Tempus AI uses AI to interpret medical tests, combining laboratory results with patients' clinical data to personalize diagnostic results, helping doctors provide more precise treatment plans for patients.

For example, at the beginning of the COVID-19 outbreak when there was a lack of diagnostic testing, it was evident that even mature healthcare infrastructure might be ill-prepared for future challenges. Tempus AI is dedicated to addressing this issue through its advanced technology. During the COVID-19 pandemic, Tempus AI quickly launched home testing kits.

Before going public, CEO Eric Lefkofsky stated in a program that with rapid revenue growth, the company is improving financial performance by enhancing operational efficiency. It is expected that within the next year, the company will achieve positive growth in cash flow and EBITDA.

Lefkofsky's founding of Tempus AI was inspired by personal experience - after his wife was diagnosed with breast cancer, he was deeply disappointed by the shortcomings of the existing healthcare system. Therefore, he decided to establish this company, focusing on the field of oncology, to understand tumors at the molecular level through genomic testing and tailor treatment plans for patients.

Reportedly, Morgan Stanley, J.P. Morgan, and Allen & Company served as the lead underwriters for Tempus AI's IPO. Additionally, according to PitchBook data, the shareholder list includes well-known entities such as Google, Baillie Gifford, Franklin Templeton, NEA, and T. Rowe Price, among others