AI-related stocks are once again capturing attention in the US stock market. With Cathie Wood's resurgence, small-cap stocks are starting to move, and among them, Tempus AI stands out in the medical AI sector. This isn't just another company riding the AI wave – it's an intriguing enterprise building a monopolistic data platform in healthcare, similar to Palantir's approach.
CEO Eric Lefkofsky: Groupon Founder's New Challenge
To understand Tempus AI, you first need to know its CEO, Eric Lefkofsky. He's famous as the co-founder of Groupon, an online coupon service that many Americans still actively use. Whether you're renting a bike in Central Park or booking a restaurant, Groupon offers practical discounts and upgrade benefits.
Eric's background is quite impressive. Born in 1969 to an engineer father and teacher mother, he showed entrepreneurial talent from an early age. As a college freshman, he opened a café that reportedly earned hundreds of thousands of dollars annually. After graduating from the University of Michigan and earning a law degree, he chose entrepreneurship over practicing law – a path similar to Peter Thiel's.
His entrepreneurial journey spans diverse fields: logistics technology, global logistics, marketing, and media. Notably, he's been running the Lefkofsky Family Foundation since 2006, showing his long-standing interest in healthcare.
A Promise to Olivia - The Real Motivation Behind the Startup
Tempus AI's founding story is deeply personal and moving. It began in 2014 when Eric's wife was diagnosed with breast cancer. Meeting with oncologists, he discovered the overwhelming number of treatment options available and realized that finding the optimal treatment for each patient was often a process of trial and error.
But the real turning point came because of Olivia, a 19-year-old friend of Eric's daughter. Although Olivia's initial treatment was successful, a follow-up scan in 2021 revealed tumors in her kidneys, and she eventually passed away. The rapid progression of cancer in young patients made this particularly heartbreaking.
Eric wrote a blog post titled "To Olivia," describing how treating cancer involves navigating through primary, secondary, and tertiary treatments while families struggle to manage medical information across 200+ hospitals. He confessed, "I still hurt at night in 2024 because I couldn't help that child."
This experience led to the creation of "Olivia," an AI health management assistant app. It helps patients record symptoms, prepare questions, manage health information, and track treatment progress. With telemedicine being well-established in the US, the app even enables video consultations, with all records systematically managed.
Eric's entrepreneurial philosophy is compelling: "Everyone deserves the best treatment choices – now patients need weapons too." This encapsulates what Tempus AI strives for.
Building a Monopolistic Platform for Medical Data
Tempus AI's core mission is integrating medical data and analyzing it with AI. They collect all types of medical data – genetic information, MRI images, CT scans, EMRs (Electronic Medical Records) – and use AI to analyze them. This enables determining optimal treatments for patients based on big data and treatment data from other patients.
The company's business model consists of three main components:
1. Genetic Testing (75% of revenue)
When patients are diagnosed with cancer, tissue samples undergo DNA and RNA sequencing. They identify problematic genetic segments and use AI algorithms to recommend the best treatments or clinical trials. This is already well-established in oncology and expanding into mental health.
2. Data Services (25% of revenue, core growth driver)
They provide data matching services to pharmaceutical companies. Currently partnered with over 200 biotech companies, with multi-year collaborations including AstraZeneca.
3. Database Monopoly Power
They possess databases from approximately 65% of US medical centers and are connected to over 50% of US oncologists. Over 30,000 patients are eligible for clinical trial enrollment.
Similarities to Palantir and Monopoly Potential
What makes Tempus AI fascinating is its structural similarity to Palantir. Both are platform companies that integrate data and provide AI-powered insights. The difference is that while Palantir targets government and enterprise clients, Tempus AI specializes in healthcare.
Particularly noteworthy is CEO Eric's monopoly on voting rights. Regular shareholders have no voting rights – all decision-making power rests with the CEO. This allows pursuing long-term vision without management disputes. While this could be problematic if the CEO becomes corrupt or self-serving, his track record suggests such concerns are minimal.
Tempus AI is aggressively expanding its medical database through acquisitions. In 2025, they acquired Deep 6 AI (a clinical patient trial matching platform), and in 2023, they acquired companies with cardiac disease data and Altel, a medical imaging AI company. They're systematically accumulating medical data this way.
Investment Opportunities and Risks
Tempus AI's greatest appeal lies in its monopoly potential. Once they achieve a certain level of medical database monopoly, new competitors will find it difficult to enter. Like Palantir, it's a structure where costs don't increase proportionally with customer growth. Since most operations run on AI systems, human resources don't need to scale significantly beyond data center costs.
Current revenue growth rates are high, and cost structures are improving. They're currently unprofitable not due to operational costs but because they're investing in acquisitions. This should be viewed as investment in medical database monopolization. Recent quarters show significant revenue increases with relatively controlled costs. If this trend continues, profitability seems achievable.
If they secure deals with major pharmaceutical companies like Pfizer or Eli Lilly, revenue could explode. Just as NVIDIA rode the AI boom, Tempus AI could ride the medical AI wave.
Risk Factors to Consider
However, the risks are substantial. Healthcare is an extremely sensitive field. Medical databases contain sensitive personal information, and the US has extensive medical litigation. They could face lawsuits on a scale incomparable to Tesla's autonomous driving incidents.
Being an unprofitable company is another consideration. We've experienced the high volatility of unprofitable companies since 2020. Timing investments around profitability milestones is crucial.
Chart analysis shows significant decline from peaks with recent gradual recovery. Many retail investors likely bought at high points. This represents a typical FOMO (Fear of Missing Out) pattern.
Conclusion: A Company Poised to Lead Medical AI's Future
Tempus AI isn't just another AI theme stock – it's a company building long-term competitive advantages through medical data monopolization. The CEO's genuine motivation from personal experience, proven management capabilities from Groupon, and a business model similar to Palantir make it attractive.
Healthcare is one of the areas where AI can make the biggest impact. As Jensen Huang said, "Next is bio" – AI-driven medical innovation has already begun. Tempus AI is at the forefront of this movement.
However, considering they're still unprofitable and healthcare risks are significant, waiting for profitability before investing seems wise. Remember how Palantir soared after turning profitable – waiting a bit longer won't be too late.
Ultimately, this company's success depends on how much they can monopolize medical databases. Their progress so far suggests strong potential. Whether they can become the Palantir of medical AI remains to be seen, but their future trajectory is certainly worth watching.