SoftBank Partners with Tempus to Launch AI-Driven Medical Services in Japan
On Thursday, Masayoshi Son, founder of SoftBank Group, unveiled a partnership with the Chicago-based health tech firm Tempus to establish a joint venture named SB Tempus. This collaboration aims to harness artificial intelligence to create personalized medical services by analyzing health data in Japan. Initially, the focus will be on oncology, addressing a significant health challenge as cancer remains the leading cause of death in the country. Son's personal connection to this cause is poignant; his father succumbed to cancer last year.
This significant development reflects Son’s broader vision to integrate AI across various sectors, with healthcare being a primary area of interest. During an impromptu press conference, he elaborated on the venture's potential impact within the medical industry.
The relationship between SoftBank and Tempus has been in the works, as evidenced by SoftBank’s $200 million investment in Tempus in April, just ahead of the company’s IPO on Nasdaq. Once valued at $8.1 billion in 2022, Tempus successfully raised nearly $411 million through its IPO, although its current market capitalization has dropped to $4.5 billion.
Founded in 2015 by serial entrepreneur Eric Lefkofsky, Tempus emerged from a realization that healthcare providers often do not utilize data effectively in treatment plans. The company now competes with others in the genomic testing and data analysis space, such as Foundation Medicine and Guardant Health.
SB Tempus will serve as a conduit for introducing Tempus's data-centric medical technology in Japan. The joint venture aims to create clinical sequencing capabilities, manage patient data, and establish a real-world data business across the nation. Specifically, the venture will provide genomic testing, aggregate medical data (including genomic, clinical, pathology, and imaging data), and utilize AI for personalized treatment recommendations.
With both SoftBank and Tempus holding equal stakes of 50%, SoftBank plans to invest approximately 30 billion yen (around $188 million) into the venture, as stated by Son at the media briefing. SB Tempus is scheduled to commence operations in August, launching three AI-driven medical services that analyze personal medical data by the end of the year.
The joint venture plans to collect and evaluate patient genetic information from Japanese hospitals and universities. This comprehensive dataset, which includes genomic and clinical details, will train AI algorithms tailored to the Japanese patient population. Hospitals will receive processed data to enhance clinical decision-making, while AI systems will recommend optimal treatment paths for patients.
Currently, only about 1% of Japanese patients have undergone genomic testing, compared to approximately 30% in the United States. Son expressed aspirations to elevate Japan's genomic testing rates to match those of the U.S. Beyond oncology, the company aims to broaden its services to include neuropsychology, radiology, and cardiology.
This announcement follows a notable appearance by Son at SoftBank’s annual meeting last Friday, where he articulated a grand vision for artificial super intelligence (ASI), projecting that AI could become 10,000 times smarter than humans within a decade. He emphasized that previous investments by SoftBank were merely preliminary steps toward his ambitious AI goals.
Son reiterated AI's potential benefits across numerous fields, including healthcare. Additionally, reports have surfaced suggesting that SoftBank is considering an investment in U.S.-based Perplexity AI, which is valued at $3 billion.
Following a period of losses at SoftBank's Vision Fund, the firm seems to be transitioning back into an aggressive investment phase, particularly in AI technology. Tempus's stock rose by 9% on its first trading day, indicating strong investor interest in health tech powered by artificial intelligence.
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