Ambient AI platform Ambience Healthcare banked $243 million in series C funding, marking one of the largest health tech raises so far in 2025.
The funding boosts the company’s valuation to $1.25 billion, signaling that the red-hot healthcare AI market is not cooling down. Oak HC/FT and Andreessen Horowitz (a16z) led the round. Existing investors, including the OpenAI Startup Fund, Kleiner Perkins and Optum Ventures also backed the series C, along with new investors Frist Cressey Ventures, Town Hall Ventures, Smash Capital, Georgian and Founders Circle Capital.
The company has raised $345 million to date, including a $70 million series B round in February 2024.
Ambience plans to use the funding to expand its reach to more health systems and build out more products.
Ambience’s platform uses AI for documentation, clinical documentation integrity and point-of-care coding. The company says it goes beyond transcription to generate accurate, compliant and specialty-aware clinical notes and codes in real time.
More than 40 U.S. health systems—including Cleveland Clinic, UCSF Health, Houston Methodist and Memorial Hermann—have deployed its ambient AI technology, the company said.
The AI documentation software records patient appointments, automates documentation with ambient listening and preps them with specialty-specific chart summaries. The tech generates comprehensive medical notes and also has built-in features like an ICD-10 assistant and real-time compliance engine, according to the company.
The company claims it can cut charting time by 45%.
For administrators, Ambience can standardize workflows across coding, quality, CDI, prior authorization and utilization management by producing complete, compliant documentation in real time. Built-in support includes CDI & ICD-10 coding assist and structured chart output tailored for operational review.
The technology also generates customized after-visit summaries for patients.
Ambience integrates directly into the electronic health record and supports more than 200 specialties, including complex and underserved domains like oncology, psychiatry and emergency medicine. The company attests that its platform adapts to the unique context of each care setting and specialty without requiring workflow redesign or staff retraining.
Adoption has been fastest in high-complexity subspecialties, the emergency department and inpatient settings—areas with the greatest documentation burden.
“Documentation has long been a source of friction,” CEO Michael Ng said in a statement. “Ambience is turning it into a source of strength – transforming how clinicians deliver care, how administrators run operations, and how patients experience the system.”
While many health systems are still testing out ambient scribe vendors, the Cleveland Clinic inked an exclusive, five-year partnership with Ambience after a six-month pilot period that pitted five major ambient scribes against each other.
The Cleveland Clinic tested the five AI scribe solutions for documentation quality, product features, provider satisfaction, ease of implementation and return on investment. Executives said it was the first head-to-head test of the major AI scribe products for healthcare, and the extensive piloting revealed differences in the quality of the clinical documentation generated by the vendors.
“We realized that the underlying technology of some of them was significantly better than the others, and that was a surprise,” Beth Meese, executive director of digital health at the Cleveland Clinic, said in an interview with staff writer Emma Beavins at the ViVE 2025 conference in February.
“When we first backed Ambience at the seed, we saw the potential for their ambient AI product to be the wedge into a number of essential clinical workflows over time,” said Julie Yoo, general partner at Andreessen Horowitz (a16z), in a statement. “In a space now crowded with point solutions, the exceptional team at Ambience has executed impressively over the years by expanding into a robust platform, grounded in real clinical needs-tailored to subspecialties, trusted by frontline providers, and delivering clear value to health systems. We’re honored to continue to support Ambience to bring AI to the places where it’s needed the most in healthcare.”
Publisher: Source link
