Tempus AI (NASDAQ:TEM) said on Wednesday it has signed multi-year strategic collaborations with AstraZeneca (AZN.L) and Pathos AI to co-develop what it called the largest multimodal foundation model in oncology, sending its shares up more than 15% in morning trading.
The deals, which include $200 million in data licensing and model development fees to Tempus, will leverage the company’s vast repository of de-identified oncology data and artificial intelligence capabilities to help identify new drug targets and advance cancer therapies.
Under the agreements, Tempus, AstraZeneca, and Pathos will work together to build a foundational AI model designed to generate biological and clinical insights that could accelerate precision medicine in oncology.
Once completed, the model will be shared among all three parties to support their respective efforts to improve cancer treatment.
“Generative AI and the emergence of large multimodal models is the final catalyst needed to usher in precision medicine in oncology at scale,” Tempus founder and CEO Eric Lefkofsky said in a statement.
The collaboration with AstraZeneca expands on an existing strategic partnership between the two companies first announced in 2021. AstraZeneca will use the model to support the development of new therapeutic programs globally.
Tempus, which went public in June 2024, has positioned itself as a key player in the application of AI to healthcare, particularly in oncology where its data-driven tools are used to personalize treatment decisions.