SoftBank Group founder Masayoshi Son announced on Thursday that the Japanese tech giant has established a joint venture in the country with Chicago-based health tech company Tempus. Together, the pair plan to develop AI-powered personalized medical services, focusing initially on oncology, under the name SB Tempus.
SoftBank’s collaboration with Tempus aims to leverage artificial intelligence (AI) to enhance personalized medical services by analyzing data within Japan. This venture marks a significant step in Masayoshi Son’s broader ambition to integrate AI across various industries, particularly the medical sector.
The partnership between SoftBank and Tempus is not new. SoftBank had invested $200 million in Tempus in April, shortly before Tempus made its debut on Nasdaq earlier this month. Despite Tempus’s initial valuation of $8.1 billion in 2022, its market cap has recently dropped to $4.5 billion.
| Event | Details |
|---|---|
| JV Announcement | SoftBank and Tempus form SB Tempus for AI medical services. |
| Initial Focus | Oncology |
| SoftBank’s Investment in Tempus | $200 million in April 2023 |
| Tempus IPO | Raised nearly $411 million, current market cap $4.5 billion |
| SB Tempus Operations Start | August 2024 |
| SoftBank’s Investment in JV | 30 billion yen (approx. $188 million) |
SB Tempus plans to begin its operations with a focus on oncology, as cancer remains the leading cause of death in Japan. This focus is personal for Son, whose father passed away from cancer last year. The joint venture aims to provide genomic testing, medical data aggregation, and AI-driven insights for personalized cancer treatments and therapies.
The joint venture will start collecting and analyzing genetic data from Japanese hospitals and universities. This data, encompassing genomic, pathological, clinical information, and photo images, will be utilized to train AI models to develop personalized treatment plans for patients in Japan. The processed data will be provided to hospitals for clinical use, and the AI offerings will suggest optimal treatments for patients.
- Clinical Sequencing Capabilities: Building robust systems for sequencing patient genomes.
- Data Organization: Structuring and managing patient data for actionable insights.
- Real-World Data Business: Developing a business model around the application of real-world data.
- AI Insights: Providing AI-driven recommendations for personalized treatments.
While the initial focus is on cancer, SB Tempus aims to expand its AI-powered services to other medical fields, including neuropsychology, radiology, and cardiology. This expansion is in line with Son’s vision of leveraging AI to revolutionize healthcare.
Son highlighted a significant disparity in genomic testing between Japan and the U.S. Currently, only about 1% of patients in Japan have access to genomic testing, compared to approximately 30% in the U.S. SB Tempus aims to bridge this gap, making genomic testing more accessible and widespread in Japan.
This announcement comes shortly after Son’s presentation at SoftBank’s annual meeting, where he emphasized the transformative potential of AI. He predicted that AI will be 10,000 times smarter than humans within a decade and outlined his vision for a world dominated by Artificial Super Intelligence (ASI).
Son’s emphasis on AI extends beyond healthcare. SoftBank is reportedly interested in investing in Perplexity AI, a U.S.-based AI company, at a valuation of $3 billion. This move indicates SoftBank’s broader strategy to invest heavily in AI technologies.
The formation of SB Tempus reflects a strategic shift for SoftBank, which has faced significant losses in its Vision Fund investment arm. The company has adopted a more conservative investment approach, focusing on high-potential sectors like AI. With billions of dollars in its war chest, SoftBank appears ready to make substantial investments in AI-driven ventures.
SB Tempus will commence operations in August, offering AI-based medical services to hospitals in Japan. The company’s initial focus on oncology will soon extend to other medical fields, demonstrating the potential of AI to revolutionize healthcare in Japan.
- Strategic Partnership: SoftBank and Tempus form SB Tempus to provide AI-driven personalized medical services in Japan.
- Initial Focus on Oncology: The venture will start with cancer treatment, aiming to expand to other medical fields.
- Addressing Genomic Testing Gap: SB Tempus seeks to make genomic testing more accessible in Japan.
- Substantial Investment: SoftBank and Tempus each hold a 50% stake in the joint venture, with SoftBank investing 30 billion yen.
- AI’s Transformative Potential: Son envisions AI becoming exponentially smarter, with healthcare being a key sector for AI applications.
SB Tempus represents a significant step in SoftBank’s strategy to integrate AI across industries, with a particular focus on healthcare. By leveraging AI to analyze medical data, SB Tempus aims to provide personalized treatments, ultimately improving patient outcomes in Japan.
Featured Image courtesy of The Japan Times