Shares of Tempus AI (TEM), a leader in leveraging artificial intelligence (AI) for precision medicine, surged 7.05% in pre-market trading on Thursday. The rally came amidst growing expectations that the availability of cost-efficient AI models from emerging players like DeepSeek could drive wider adoption of AI-powered healthcare solutions.

DeepSeek, a Chinese AI company, has recently gained attention for its large language models (LLMs) that are significantly cheaper to train and deploy compared to expensive U.S. models like OpenAI's GPT-4. By optimizing model architectures and training processes, DeepSeek claims to achieve similar performance at a fraction of the cost, potentially disrupting industries reliant on AI-driven automation, including healthcare.

For companies like Tempus AI, the availability of affordable AI models could be a game-changer. Tempus AI's AI-enabled platform, Tempus Next, identifies care gaps and provides clinicians with actionable insights, supporting access to guideline-directed treatments. By integrating cost-effective AI models like DeepSeek's, Tempus AI could enhance its platform's capabilities while reducing development and deployment costs, fostering broader adoption of AI-driven precision medicine.