Ambience Healthcare, a San Francisco-based AI startup, has raised $243 million in Series C funding, pushing its valuation beyond $1 billion. The latest round was led by Andreessen Horowitz and Oak HC/FT, with continued support from earlier backers including the OpenAI Startup Fund, Kleiner Perkins, and Optum Ventures. Several new investors also joined in, such as Frist Cressey Ventures, Town Hall Ventures, Smash Capital, Georgian, and Founders Circle Capital.
With the fresh capital, Ambience Healthcare aims to broaden its reach by onboarding more hospitals and clinics. The company also intends to grow its current team of 180 employees to support its next phase of expansion.
Ambience, which helps ease the admin load on doctors and nurses, is the latest sign of just how eager venture capitalists are to back startups using AI across healthcare from drug discovery and diagnostics to improving patient care and clinical workflows.
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In a recent LinkedIn post, it was noted that healthcare systems are grappling with a growing administrative crisis. From overwhelming documentation demands fueling physician burnout to coding mistakes costing the industry $31 billion a year, the pressure is mounting. With ongoing staffing shortages only making things worse, top health systems aren’t standing still as they’re collaborating with AI-first companies to transform how clinical workflows are managed.
This AI startup’s technology is designed to seamlessly embed into leading electronic health record (EHR) systems like Epic, Oracle Cerner, and athenahealth. Within Epic, it functions through the Epic Toolbox, enabling clinicians to use tools like Hyperdrive and Haiku without the need for manual uploads, copy-pasting, or toggling between platforms. By leveraging the Epic Ambient Module and built-in FHIR APIs, the platform can interact directly with patient charts, streamlining workflows and improving data accuracy.
Launched in 2020, Ambience Healthcare develops AI-driven tools that assist clinicians by handling documentation, medical coding, and workflow optimization across various care settings, from outpatient clinics to emergency departments and hospitals. Its system connects with leading EHR platforms and is already in use at prominent healthcare institutions including Cleveland Clinic, UCSF Health, Memorial Hermann, and Houston Methodist.
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OpenAI has backed Ambience Healthcare through its Startup Fund, signaling strong support for the company’s mission to apply AI in clinical settings. The investment highlights OpenAI’s belief in Ambience’s potential to ease the administrative load on medical professionals and streamline healthcare workflows. It also reflects OpenAI’s broader commitment to supporting AI solutions that address real-world challenges in vital industries like healthcare.
OpenAI’s Startup Fund has backed a range of early-stage companies that are applying artificial intelligence in practical and transformative ways. OpenAI’s Startup Fund has backed companies across a wide range of industries, including law (Harvey), robotics (1X Technologies), education and media (Descript), developer tools (Cursor), and finance (Figure). These startups are united by a common thread: they’re building with AI at their core to tackle real-world challenges and bring innovation to long-standing systems. This investment strategy highlights OpenAI’s commitment to advancing practical, ethical AI across sectors that affect everyday life not just within traditional tech spaces.