Pittsburgh-based startup Abridge AI is in talks to raise $300 million, which could nearly double its valuation to $5.3 billion. The deal, led by Andreessen Horowitz with Khosla Ventures also involved, is not yet final but marks a major vote of confidence in healthcare-focused AI. Abridge builds tools that help doctors by automatically transcribing and summarizing medical conversations.
Founded by cardiologist Shiv Rao, the company aims to ease the burden of documentation. “You walk in the room, have the conversation, and make eye contact,” Rao said earlier this year. “You can be present.” The potential raise follows a $250 million round in February, when Abridge was valued at $2.75 billion.
AI That Listens While Doctors Talk
Abridge AI was created in 2018 by Shiv Rao, who saw a daily problem in hospitals: too much writing, not enough care. “My notes were unreadable,” he said in February. Doctors often spend hours typing up patient visits. That slows down billing, causes errors, and leaves doctors drained.
Abridge’s system listens during doctor-patient conversations and generates notes, summaries, and even billing codes. It uses generative AI, a type of software that creates human-like text. Similar tools power ChatGPT, which helped change how people view AI’s potential.
At first, many doctors didn’t believe an AI could handle medical conversations. But recent progress in natural language models changed minds. “We became an overnight success,” said Rao, “six or seven years in the making.”
Rapid Growth Brings Attention and Pressure
The company’s new funding could bring the total investment to over $700 million. Backers include IVP, Spark Capital, and Bessemer Venture Partners. The sudden valuation leap reflects a strong belief in Abridge’s model and the broader demand for usable AI in medicine. Hospitals using Abridge report more accurate notes and faster turnaround for administrative tasks. That means more time with patients and less burnout for doctors.
The AI handles dozens of specialties, from cardiology to psychiatry. Still, some experts worry about patient privacy and the risks of relying too much on automated systems. Medical language is complex, and mistakes can carry real consequences. The company has not shared detailed performance data publicly. Abridge says it continues to improve accuracy and works closely with hospital systems. With new funding, it plans to expand its team and scale faster across the U.S.
Can Abridge AI Really Fix the Doctor’s Desk?
Abridge’s momentum reflects a growing shift in how technology supports care. As doctors face rising demands, tools that reduce routine work are gaining attention. If adopted thoughtfully, AI like Abridge could give physicians back their time and patients more meaningful moments during visits.
Conversations, not clicks, may become the center of care again. The road ahead will still require careful steps. But with continued trust, testing, and transparency, tools like Abridge may help reshape daily life in clinics for the better.
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