Among many other smaller names, OpenAI’s Startup Fund is also lending financial aid to artificial intelligence healthcare startups as the market sees significant traction with more customers and investors.
OpenAI and Kleiner Perkins have led a Series B funding round worth $70 million for Ambience Healthcare alongside Andreessen Horowitz and Optum Ventures, two of the biggest pre-existing backers for the startup.
This latest infusion of capital underscores a strategic approach by Kleiner Perkins and OpenAI, marking their continued collaboration in funding startups specializing in sector-specific AI technologies. Notably, their joint investments include an $80 million contribution to Harvey.AI, a pioneer in legal AI, last December.
With this funding round, the total amount secured by the company escalates to $100 million. Although the current valuation remains under wraps, for a bit of insight, PitchBook’s analysis pegged it at $126 million post-money following its Series A fundraising in 2022.
Ambience also does not talk about its customers or how much data it has processed for them, but notable customers on its list include UCSF, Memorial Hermann Health System, John Muir Health, The Oncology Institute, GI Alliance, Midi Health and Eventus WholeHealth. While certain details about the startup remain undisclosed, its list of significant investors speaks volumes about the traction it is getting.
The startup is known for providing healthcare organizations with a specialized “operating system” powered by AI to make tasks easier and quicker for everyone. For instance, it is able to help clinicians complete substantial administrative work required of them in much less time. It covers clinical work related to a wide range of outpatient medical services such as cardiology, oncology, pediatrics, and ENT.
The genesis of Ambience Healthcare traces back to the chance meeting of its co-founders at MIT. CEO Michael Ng and Chief Scientist Nikhil Buduma, both of whom have faced significant health challenges — a broken back and heart issues, respectively — embarked on their journey together.
As a result, they developed a keen sensitivity to the complexities and variances inherent in patient care and clinical operations. This urged them to work to improve the healthcare system by making it more efficient and streamlined, which has now become easier with AI.