Artificial intelligence (AI) is increasingly transforming the healthcare landscape, with startups bridging the gap between technology and clinical practice gaining considerable attention from both customers and investors. One notable example is Ambience Healthcare, which has developed an innovative “operating system” designed specifically for healthcare organizations to streamline the extensive administrative tasks faced by clinicians. Recently, Ambience raised $70 million in funding to expand its services, primarily focusing on the U.S. market and encompassing various ambulatory specialties, including cardiology, oncology, pediatrics, and ENT.
While Ambience does not disclose its customer count or the volume of data processed through its platform, it has notable clients like UCSF, Memorial Hermann Health System, John Muir Health, The Oncology Institute, GI Alliance, Midi Health, and Eventus WholeHealth. The latest funding round attracted significant investors, further underscoring the company's momentum.
Kleiner Perkins and OpenAI’s Startup Fund are co-leading this Series B round, with participation from other high-profile backers like Andreessen Horowitz and Optum Ventures. The strategic nature of this investment aligns with their history of co-investing in vertically-focused AI startups, exemplified by their recent $80 million round in legal AI provider Harvey.AI. Ambience Healthcare has now raised a total of $100 million, although it has not disclosed its current valuation. For reference, PitchBook estimated it at $126 million post-money during its Series A funding in 2022.
The concept behind Ambience Healthcare originated from the co-founders' experiences at MIT. CEO Michael Ng and Chief Scientist Nikhil Buduma both encountered significant medical challenges—Ng with a broken back and Buduma with heart issues—resulting in a profound understanding of the patient and clinical workflow. Ng described his injury as a “wake-up call” that prompted him to consider how he could contribute to meaningful changes in healthcare.
Experiencing medical trauma often inspires individuals to pursue careers in healthcare, and this appears to be true in Ng and Buduma's case. Their passion for improving clinical processes led them to co-found a previous venture, Remedy Health, which aimed to leverage AI for diagnosing health conditions. However, that startup struggled to secure funding beyond the seed stage and ultimately shut down in 2020.
Ambience Healthcare is now addressing a different but equally critical aspect of clinicians' workloads: the extensive administrative tasks required for patient interactions. In the U.S., where healthcare is closely linked to payment systems and the risk of litigation, managing administrative processes becomes crucial.
By covering multiple ambulatory specialties, Ambience Healthcare ensures that all necessary data points are captured during patient interactions. Its product suite includes tools like AutoScribe, which automatically generates clinical notes in real-time; AutoCDI, for analyzing past conversations and ensuring proper coding; AutoRefer, which facilitates referrals to specialists; AutoAVS for post-visit summaries; and the upcoming AutoPrep, designed to help clinicians prepare for appointments.
While Ambience has not disclosed the specific technologies or language models behind its platform, OpenAI’s participation suggests strong potential for technological collaboration.
Currently, Ambience’s offerings do not extend to diagnosis, but Ng has hinted that this could be part of the company’s future roadmap.
Despite the competitive landscape, Ambience operates within an emerging sector flooded with opportunities. According to CBInsights, medical “co-pilot” tools had previously raised around $240 million in funding, with this latest round adding significantly to that total. Competitors like Corti, a Danish startup aiming for comprehensive AI assistance, raised $60 million, while Paris-based Nabla secured $24 million and collaborates with major players, including Kaiser Permanente. Additionally, Microsoft is making strides with its HealthBot.
The potential of AI in healthcare remains vast, prompting investors to seek promising opportunities in the space. "Healthcare is one of the most promising areas for AI to create an outsized positive impact," stated Brad Lightcap, COO of OpenAI and manager of the OpenAI Startup Fund. "Ambience Healthcare has assembled an exceptional team dedicated to providing a comprehensive ecosystem of products that seamlessly integrate into healthcare practitioners' workflows, advancing both AI and medicine."
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