Urgent Update: AI Dominates HLTH 2025 Amid Bubble Fears

UPDATE: The HLTH conference in Las Vegas has become the epicenter of AI innovation and concern, as healthcare leaders grapple with the implications of rapid AI advancements. This year’s event, held from October 15-17, 2025, showcased a plethora of AI startups such as Jorie AI and Suki, alongside industry giants like Samsung and Johnson & Johnson.

Nearly every company at HLTH displayed an AI component, reflecting the overwhelming presence of artificial intelligence in healthcare today. However, beneath the buzz, many executives expressed feelings of AI fatigue and concerns over a potential bubble in funding, as market dynamics shift rapidly.

Healthcare venture capitalists are witnessing a massive influx of money, with digital health startups attracting $6.4 billion in funding in just the first half of 2025. Yet, 62% of that funding is directed towards AI initiatives, raising alarms about saturation in key markets.

Industry leaders are increasingly wary of formidable competitors. Notably, OpenAI has entered the fray, with its new healthcare lead, Nate Gross, appearing on stage alongside representatives from Microsoft, Google, and Nvidia. Though details on OpenAI’s healthcare strategy remain sparse, the looming presence of such tech giants is heightening anxiety among smaller startups.

“In my portfolio, people view OpenAI and Anthropic much more as a threat than they have ever viewed Amazon or Microsoft,” stated Blake Wu, a partner at NEA. “OpenAI and Anthropic have moved quickly into every category.”

The HLTH convention, often likened to the “Dreamforce of healthcare,” features extravagant displays, with an entire AI Zone dedicated to innovative technologies. However, many attendees criticized the overwhelming similarity among booths, with one anonymous executive expressing frustration: “Everyone is framing themselves as the most generic, enterprise-wide agentic AI solution. It makes me want to vomit.”

Despite the concerns, the event showcased significant funding announcements, including a remarkable $200 million raise by medical AI search startup OpenEvidence at a valuation of $6 billion. Meanwhile, Hyro secured $45 million to advance its responsible AI platform.

As the conference unfolds, the dialogue around AI’s role in healthcare continues to evolve. While some investors see potential for rapid growth, others caution that incumbents like Epic, which recently announced plans to introduce its own AI tools, could stifle competition. Epic’s absence on the show floor spoke volumes about its looming presence in the industry.

The stakes are high, particularly in a sector where missteps could have severe consequences. Mary Beth Navarra-Sirio, a vice president at UPMC Enterprises, highlighted the challenges of integrating technology into clinical processes, stating, “You could have the best technology in the world, but if you really don’t understand how it needs to support a clinical process, you won’t win in this space.”

As HLTH progresses, the focus remains on responsible AI development. Attendees noted a growing emphasis on ethical AI practices, with initiatives aimed at ensuring that tools are not only innovative but also safe and effective in healthcare settings.

This year’s HLTH conference underscores the urgent need for clarity and innovation in healthcare AI as the industry navigates complex challenges and opportunities. Investors, startups, and healthcare providers must watch closely as the AI landscape continues to shift rapidly.

Stay tuned for further updates as this story develops. The implications of AI in healthcare are unfolding in real-time, and those involved must adapt quickly to the changing environment.