Niche companies for artificial intelligence (AI) Tempus AI (TEM 21.73%) is a stock that has recently been listed on the stock exchange and is making significant moves. When it was revealed that one of these investments was a strategic investment in a comparable company, investors bid up the company’s shares by almost 22% on Wednesday. That was more than enough of a boost to S&P500 The index recorded an increase of 0.4% on this day.

Grab more shares of a peer

Tempus AI announced in a regulatory filing after the market closed on Tuesday that it had completed a new purchase of Personalis (PSNL 11.42%) shares as part of an investment agreement. The two companies announced late last week that they would complete the transactions.

Just over 9.2 million Personalis shares were acquired by Tempus AI through the exercise of two warrants. The warrants were originally acquired in late 2023 and entitled Tempus AI to purchase its competitor’s common stock for either $1.50 or $2.50 per share. The exercise of the warrants resulted in a total consideration of just over $18.4 million to the purchaser.

Separately, Tempus AI, clearly determined, bought 3.5 million shares, paying $5.07 per share for a total value of over $17.7 million.

A major owner

The two companies have notable synergies, as Tempus AI focuses on “smart diagnostics” in healthcare, while Personalis is a biotech company specializing in the development of cancer diagnostic tests. When announcing their original strategic collaboration in 2023, Personalis said the goal was for the pair to commercialize the biotech’s diagnostic product NeXT Personal Dx.

According to Tempus AI and Personalis, the former company now owns just over 19% of Personalis’ outstanding common shares.