SoftBank Group (OTC:SFTBY) (OTC:SFTBF) is set to introduce a medical service in Japan that uses artificial intelligence to analyze personal medical data, including genetic information. The service will be launched through a joint venture with U.S. healthcare company Tempus AI Inc. (NASDAQ:TEM). Following the report, Tempus AI Inc.'s stock surged nearly 3% in pre-market hours trading.
What Happened: The joint venture, capitalized at 30 billion yen ($188 million), will be equally owned by SoftBank Group and Tempus AI. The venture is expected to commence operations as early as July and aims to start providing services within one to two years, reported Nikkei on Tuesday.
Tempus AI, through its analytical machine learning platform, enables physicians to make real-time, data-driven decisions to provide personalized care and targeted therapies for patients using the power of AI in healthcare.
SoftBank and Tempus AI did not immediately respond to Benzinga's request for comment.
Why It Matters: This initiative comes at a crucial time for SoftBank, which has faced significant challenges in recent years. In 2019, SoftBank's Vision Fund sold all of its shares in Nvidia, missing out on a potential gain of over $150 billion.
Moreover, Masayoshi Son has seen a notable drop in shareholder support for his reappointment as CEO, falling from 95.93% to 79.22% in a year, following a recommendation by proxy advisor Institutional Shareholder Services.
In addition, activist investor Elliott Investment Management has taken a $2 billion stake in SoftBank and is demanding a $15 billion share buyback, reflecting investor concerns over the company's strategic direction.
Finally, the collaboration between SoftBank and Tempus AI aligns with a broader trend of integrating AI into healthcare. For instance, Microsoft-backed OpenAI has partnered with Color Health to develop AI-driven cancer care solutions.
Price Action: Tempus AI Inc. closed at $24.96 on Tuesday, experiencing a decrease of 1.38% for the day. In pre-market trading, the stock rose by 2.52%. Since its public debut, Tempus AI Inc. has seen a decline of 37.99%, according to data from Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
