The AI-driven precision medicine company turning clinical and molecular data into actionable care
HQ: Chicago, IL, United States | Founded: 2015 | Employees: ~3,000 (2025, est.) | Stage: Public (Nasdaq: TEM); ~$1.43B revenue (2025) | Website: https://www.tempus.com
Tempus AI was founded by Eric Lefkofsky (co-founder of Groupon) in August 2015, after his wife's breast cancer diagnosis exposed the gap between available molecular data and how it's actually used in care. His thesis: amass the world's largest library of clinical and molecular data and apply AI to make that data actionable for doctors and patients. The company started with cancer (genomic testing, next-generation sequencing) and expanded across oncology, cardiology, radiology, and into AI algorithms and data licensing.\n\nThe business model layers three things: (1) diagnostics/testing services for labs and hospitals (the volume engine), (2) AI algorithms and software (Tempus One, the clinical-AI assistant; Tempus+ products), and (3) data licensing/insights to pharma and life-sciences partners (Tempus +, LENS). Its scale is the differentiator — a proprietary dataset spanning genomic profiles and matched clinical outcomes at a size few rivals match.\n\nTempus went public on Nasdaq (TEM) in 2024, raising meaningful capital. Financially it has scaled dramatically: net revenue reached ~$1.43B in 2025 (from ~$693M in 2024), with gross billings around $1.62B (FY2025), while narrowing losses and approaching profitability. It formed key partnerships (e.g., with Assort Health for AI-driven care navigations; deals in genomics with labs) and launched new AI products. It has also drawn regulatory/accounting attention: in 2025 the SEC and company revisited the treatment of certain AI revenue — the SACRA item (a software-asset purchase, ~$16.8M recognized in 2024) — and Tempus reversed/restated recognition of some of that revenue as not meeting SaaS-type revenue criteria, drawing investor and analyst scrutiny over the 'quality' of its AI growth. Tempus remains a leader in the precision-medicine AI space.
Tempus AI is the category-defining attempt to make precision medicine a scalable, data-driven business. Founded by Groupon co-founder and serial entrepreneur Eric Lefkofsky in August 2015, Tempus built an enormous proprietary library of clinical and molecular/genomic data — the moat — and monetizes it across diagnostics/testing, AI algorithms, and data licensing. It went public in 2024 and scaled to ~$1.43B net revenue (2025). The bull case: its data network effect, growing genomics/testing volumes, and AI product expansion (relevant to oncology, radiology, and beyond) position it for durable healthcare AI leadership; the bear case: revenue concentration from its own testing, scrutiny over AI revenue classification (the SEC reopened/reversed recognition of some SaaS-type AI revenue in 2025 — SACRA around ~$16.8M for 2024), narrow profitability, and competitive pressure from Foundation Medicine, Caris, and tech entrants. A high-ambition, high-risk but well-funded healthcare AI leader.
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