Medical Data Firm Tempus AI Raises $410.7 Million in IPO

(Bloomberg) -- Tempus AI Inc., a technology platform company using artificial intelligence to process medical data, priced its initial public offering at the top of a marketed range to raise $410.7 million.

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Joining a rush of companies going public while touting their AI credentials, Tempus sold 11.1 million shares for $37 each after offering them for $35 to $37, according to a statement Thursday confirming an earlier report by Bloomberg News.

At the IPO price, the company has a market value of $6.1 billion based on the outstanding shares listed in its filings with the US Securities and Exchange Commission.

Chicago-based Tempus AI, founded in 2015, describes its business as creating “intelligent diagnostics” for precision medicine.

The company’s platform connects laboratory results to a patient’s own clinical data, and has been used by more than 7,000 physicians across hundreds of provider networks, according to its filings. It has a team of about 2,300 employees, with about 250 of them holding medical degrees or doctorates.

Tempus AI had a net loss of $214 million on revenue of $532 million in 2023, compared with a net loss of $290 million on revenue of $321 million a year earlier, according to the filing.

The company’s largest investors include Eric Lefkofsky, the founder and chief executive officer, as well as a firm controlled by Kimberly Keywell and entities affiliated with Baillie Gifford & Co. The company has a dual-class share structure that will give Lefkofsky 65% of the shareholder voting power after the IPO.

The offering is being led by Morgan Stanley, JPMorgan Chase & Co. and Allen & Co. The company’s shares are expected to begin trading Friday on the Nasdaq Global Select Market under the symbol TEM.

(Updates with statement in second paragraph.)

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