Tempus AI Expands into Digital Pathology with Paige Acquisition for $81.25 Million

Tempus AI, Inc. (TEM) has acquired Paige, a digital pathology AI company, for $81.25 million. The acquisition will give Tempus access to a dataset of nearly 7 million digitized pathology slide images and clinical and molecular data. The move expands Tempus' efforts in precision medicine and advances its AI capabilities in oncology.

Tempus AI, Inc. (TEM) has acquired Paige, a digital pathology AI company, for $81.25 million in stock. The acquisition will give Tempus access to a dataset of nearly 7 million digitized pathology slide images and clinical and molecular data. This move expands Tempus' efforts in precision medicine and advances its AI capabilities in oncology.

The acquisition, announced on August 25, 2025, will be settled through Tempus common stock, along with the assumption of Paige’s existing commitments related to Microsoft Azure cloud services. Tempus founder and CEO Eric Lefkofsky stated, "Paige is a leader in digital pathology and has amassed one of the most comprehensive digital pathology datasets in the world through its relationship with Memorial Sloan Kettering Cancer Centre. We believe both the Paige team, with their deep generative AI experience, and the dataset they have built, will be catalytic across all of our AI efforts" [1].

Paige, established in 2017, is focused on the development of AI applications, including the first FDA-cleared AI tool in pathology. The company has built its products using a dataset comprising nearly seven million digitised pathology slide images and related molecular and clinical data, all anonymised to ensure patient privacy. The dataset utilised by Paige encompasses de-identified data from 45 countries, representing a variety of genders, races, ethnicities, and regions. This has enabled the creation of the first million-slide foundation cancer model, which supports life sciences organisations and researchers in understanding pathology data and advancing drug discovery and development [1].

Paige CEO and CTO Razik Yousfi said, "By joining forces with Tempus, a company already making remarkable strides in oncology diagnostics, we can bring our innovations to a broader patient population and deliver even greater impact. We are confident this partnership is uniquely positioned to maximise and expand the reach of our technology, ensuring it fulfills our mission of delivering powerful, data-driven insights" [1].

The acquisition is expected to enhance Tempus’s dataset and expand its technical team. Tempus AI has been expanding its partnerships, such as its recent collaboration with Verastem Oncology to create a companion diagnostic (CDx) for the latter’s KRAS-mutant recurrent low-grade serous ovarian cancer (LGSOC) combination therapy [1].

The acquisition comes at a time when Tempus AI has seen significant growth in its revenue and stock performance. In Q2 2025, the company reported a 89.6% year-over-year revenue surge to $314.6 million, driven by a 115.3% increase in genomics revenue. Positive adjusted EBITDA of $5 million signals a maturing business model, while the $750 million convertible note issuance provides flexibility for scaling AI initiatives [3].

Tempus AI's stock has seen a 35.9% gain in the past year, outpacing the S&P 500's 15.9% and the healthcare sector's 21.4%. Analysts have assigned a Zacks Rank #2 (Buy), citing Tempus' strategic clarity and financial momentum [3].

The acquisition of Paige by Tempus AI, Inc. represents a strategic move to dominate the AI-driven precision oncology market, projected to grow to $10 billion by 2030. By securing Paige's proprietary dataset and FDA-cleared AI tools, Tempus aims to enhance diagnostic accuracy, accelerate biomarker discovery, and unlock high-margin markets in drug discovery and personalized treatment [3].

References:
[1] https://www.medicaldevice-network.com/news/tempus-ai-digital-pathology-paige/
[2] https://www.ainvest.com/news/tempus-ai-shares-fall-1-07-premarket-acquiring-paige-ai-company-specializing-digital-pathology-2508/
[3] https://www.ainvest.com/news/tempus-acquires-paige-strategic-move-dominate-ai-driven-precision-oncology-2508/