Ambience Healthcare Secures $243M for AI Health Platform Scale
Ambience Healthcare Secures $243M Series C to Revolutionize Healthcare with AI Platform
San Francisco, CA – Ambience Healthcare, a leader in ambient AI platforms for healthcare, has announced a significant milestone with the close of a $243 million Series C funding round. This substantial investment, co-led by prominent venture capital firms Oak HC/FT and Andreessen Horowitz (a16z), underscores the growing confidence in AI’s transformative potential within the healthcare sector. The round also saw continued participation from existing investors, including the OpenAI Startup Fund, Kleiner Perkins, and Optum Ventures, alongside new investors such as Frist Cressey Ventures, Town Hall Ventures, Smash Capital, Georgian, and Founders Circle Capital. This funding elevates Ambience Healthcare to unicorn status, with a valuation of $1.25 billion, marking one of the largest health tech raises in 2025.
The fresh capital will be instrumental in scaling Ambience Healthcare’s AI platform for broader adoption across health systems and accelerating the development of new products. Founded in 2020 by Mike Ng and Nikhil Buduma, Ambience Healthcare aims to alleviate the significant administrative burden faced by medical professionals, which often leads to burnout and impacts patient care. CEO Mike Ng emphasizes that health systems critically need AI now more than ever, citing the increasing number of seniors entering Medicare, a projected shortage of healthcare workers, and immense financial pressures.
Ambience Healthcare’s platform utilizes proprietary AI reasoning models to provide an end-to-end solution for documentation, coding, and clinical documentation integrity (CDI). The core of its offering lies in ambient listening technology, which passively records clinician-patient conversations in real time. This allows the AI to automatically generate comprehensive and compliant clinical notes, codes, and other necessary documentation without interrupting the flow of care. The company claims its technology can reduce charting time by 45%.
Beyond just transcription, the platform offers a suite of AI-driven tools. These include AutoScribe for generating documentation during patient visits, AutoCDI for real-time coding and compliance, AutoAVS for personalized after-visit summaries, and AutoRefer for managing specialist referrals. The system is designed to integrate directly into major Electronic Health Record (EHR) systems like Epic, Oracle Cerner, and athenahealth, adapting to the unique context of each care setting and specialty without requiring workflow redesign or staff retraining. It supports over 200 specialties, including complex and underserved domains such as oncology, psychiatry, and emergency medicine. For administrators, Ambience can standardize workflows across various operational aspects, including coding, quality, CDI, prior authorization, and utilization management, by producing complete and compliant documentation in real time.
The investment from co-leads Oak HC/FT and Andreessen Horowitz highlights their strategic focus on healthcare AI. Oak HC/FT, a growth equity firm with $5.3 billion in assets under management, has a history of investing in companies that drive structural change in healthcare and financial services, particularly those addressing issues of access, outcomes, cost, speed, and friction. Andreessen Horowitz, a prominent venture capital firm, has been consistently investing in healthcare AI startups, recognizing the potential for specialized AI models to transform the industry. Their investment in Ambience Healthcare builds on previous support, with Andreessen Horowitz having co-led a $30 million investment in Ambience in February 2023. The continued backing from the OpenAI Startup Fund further validates Ambience’s approach, as OpenAI seeks to support AI solutions that address real-world challenges in vital industries like healthcare.
Ambience Healthcare’s platform is already deployed at over 40 U.S. health systems, including renowned institutions like Cleveland Clinic, UCSF Health, Houston Methodist, and Memorial Hermann. The company’s success demonstrates the increasing demand for AI-powered solutions to combat physician burnout and improve efficiency in clinical workflows. By automating routine, time-consuming administrative tasks, Ambience aims to give clinicians more time to focus on direct patient care, ultimately enhancing patient satisfaction and improving the accuracy of medical records. As the ambient AI documentation market continues to grow, Ambience Healthcare is positioning itself as a leader by delving deeper into complex specialties and building a holistic platform that integrates pre-visit prep, ambient scribing, and revenue cycle workflows.