Healthcare AI startups continue to command strong investor interest while gaining more adoption across providers, payers and pharmaceutical companies.

In the first half of this year, about 58% of all healthcare fundraising deals involved AI companies, marking a record pace. There were also at least 10 healthcare AI startups that reached valuations higher than $1 billion over the past year, as well as at least five multi-billion-dollar healthcare AI exits in 2025, according to recent data .

With a flood of AI companies vying for attention in healthcare, both investors and customers have to discern which tools deliver value versus those that are more hype than help.

Morgan Cheatham, partner and head of healthcare and life sciences at Breyer Capital , noted that the distinction between

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