10:44 AM EDT, 05/28/2025 (MT Newswires) -- Tempus AI ( TEM ) shares were down over 16% in recent Wednesday trading after short seller Spruce Point Management expressed concerns about the company's management, its artificial intelligence capabilities, and financial reporting and accounting practices.

Spruce Point Management said it was concerned about the healthcare technology company's AI capabilities considering how it generated only 2% of its total annual revenue from AI applications in 2024. Spruce Point also raised concerns about Tempus AI ( TEM ) founder Eric Lefkofsky and company board members, saying they have a history of promoting technology companies that "have ended poorly for public investors."

The investment management firm said it believes Tempus AI's ( TEM ) shares trade "at an irrational premium" versus peers and face downside risk of up to 60%.

Tempus did not immediately reply to a request for comment from MT Newswires.

Price: 54.91, Change: -10.96, Percent Change: -16.64