Becker Private Equity & Business Podcast: Episode Summary
Title: Tempus AI: 5 Key Points
Host: Scott Becker
Release Date: May 29, 2025
Introduction
In the May 29, 2025 episode of the Becker Private Equity & Business Podcast, host Scott Becker delves into an in-depth discussion about Tempus AI, a prominent player in the artificial intelligence and healthcare technology sectors. Celebrating milestones such as surpassing 7 million downloads and securing a top spot in Apple’s Business News podcast rankings, Scott sets the stage for a comprehensive exploration of Tempus AI’s business landscape, technological advancements, and market performance.
Background of Tempus AI
Founding and Leadership
Tempus AI was established by Eric Lefkowski, a visionary entrepreneur renowned for founding Groupon. Although Brad Keewell, a co-founder of Groupon, does not hold a founding role in Tempus AI, he remains a significant early investor. Together, Lefkowski and Keewell hold substantial equity, collectively owning a significant portion of the company’s shares.
Market Position and Valuation
As of the episode's release, Tempus AI boasts a market capitalization of approximately $9.5 billion. Scott notes that around five to six of the largest shareholders control about 51% of the company, with Eric Lefkowski himself holding approximately 26% of these major shares. This concentrated ownership underscores the founders' substantial influence and commitment to the company's strategic direction.
Notable Quote:
“At one, it's founded by people that are local to us, so we watch and we're as curious. They've done a tremendous job as entrepreneurs.”
— Scott Becker [02:15]
Stock Performance and Market Sentiment
Recent Volatility
Tempus AI experienced a notable 20% drop in stock value following a critical report from a short seller. Scott addresses the nature of short selling, highlighting that such reports can sometimes be part of strategies to drive stock prices down for profit. Despite the sharp decline, he reassures listeners by pointing out that the stock has since rebounded by a few percent and remains up 62% year-to-date.
Notable Quote:
“Short selling reports are always so convoluted because sometimes the short sellers are driving reports to try and drive the stock down so they can profit from short selling.”
— Scott Becker [04:50]
Long-Term Performance
Scott emphasizes that despite short-term fluctuations, Tempus AI's overall trajectory remains positive. The year-to-date growth indicates a robust performance, suggesting resilience and strong investor confidence in the company's long-term prospects.
Reasons to Watch Tempus AI
Scott outlines multiple factors that make Tempus AI a compelling company to monitor:
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Local Founders and Entrepreneurial Success
Tempus AI’s leadership, comprising local entrepreneurs like Eric Lefkowski, has been exceptionally successful. Their track record inspires confidence and positions the company as a leader in innovation and business execution.
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Personal Connection to Healthcare Innovation
Scott shares a personal anecdote about his nephew, who battled a severe form of cancer. He was impressed to learn that the great health system treating his nephew utilized Tempus AI's technology for cancer analysis and precision medicine. This personal connection underscores the real-world impact and applicability of Tempus AI’s solutions in critical healthcare scenarios.
Notable Quote:
“One of the technologies that the great health system was using to help analyze the cancer and what to do next and to look at precision medicine and so forth, what was developed by Tempus AI.”
— Scott Becker [06:30] -
Positive Testimonials from Early Investors
A close friend and early investor in Tempus AI, based in Indianapolis, has consistently praised the company’s performance. This testimonial contrasts with another investment experience Scott had with Astera Labs, highlighting Tempus AI’s superior growth and investor satisfaction.
Notable Quote:
“He keeps on bragging to me about how he got into it early and I did not.”
— Scott Becker [09:00] -
Adoption by Major Health Systems
Tempus AI’s technologies have been widely adopted by some of the world's leading health systems. This widespread acceptance not only validates the effectiveness of their solutions but also positions Tempus AI as an indispensable tool in modern healthcare.
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Strategic Investments and Diversification
Beyond Tempus AI, Scott points out that Eric Lefkowski is also an investor in Hometown Coffee and Juice, managed by the Rubin family. This diversification showcases the founders' broad investment strategy and their influence across various industries.
Technological Impact and Industry Position
Precision Medicine and Cancer Analysis
Tempus AI specializes in leveraging artificial intelligence to advance precision medicine, particularly in oncology. Their technology assists healthcare providers in analyzing genetic data to tailor personalized treatment plans for cancer patients. This application not only enhances treatment efficacy but also exemplifies the transformative potential of AI in healthcare.
Integration with Leading Health Systems
The integration of Tempus AI’s technology with top-tier health systems underscores the company's pivotal role in the healthcare technology ecosystem. By providing critical tools for disease analysis and treatment planning, Tempus AI is positioned as a cornerstone in the advancement of medical practices.
Notable Quote:
“They've done a tremendous job as entrepreneurs … Tempus was well received and that much a tool of the trade by huge health systems.”
— Scott Becker [07:15]
Conclusion and Future Outlook
Scott Becker concludes the episode with a positive outlook on Tempus AI's future. Despite recent stock volatility, Tempus AI's strong market performance year-to-date, coupled with its innovative technological contributions and robust leadership, suggests a promising trajectory. Scott’s personal endorsements and the company's widespread adoption in critical sectors further reinforce his confidence in Tempus AI’s continued success.
Notable Quote:
“But the point being Tempus is still just doing tremendously well. It's got a market cap at almost 10 billion 9.5 as of today …”
— Scott Becker [10:30]
He encourages listeners to keep an eye on Tempus AI as a key player in both the AI and healthcare industries, poised for sustained growth and impactful innovations.
Final Remarks
Scott Becker wraps up the episode by expressing gratitude to listeners and reinforcing the value of monitoring influential companies like Tempus AI. His insights provide a comprehensive understanding of Tempus AI’s market position, technological advancements, and the personal and professional reasons that make the company a standout in the private equity and business landscape.
Closing Quote:
“Thank you for listening to the Becker Private Equity and Business podcast. Thank you very much.”
— Scott Becker [11:00]
This detailed summary captures the essence of Scott Becker's discussion on Tempus AI, highlighting the company's foundational strengths, market dynamics, technological impact, and personal endorsements that underpin its esteemed position in the industry.