Abridge in Talks to Raise at $5 Billion Valuation as AI Health Startups Draw Investors

Abridge, a seven-year-old startup that sells artificial intelligence software for transcribing physicians’ conversations with patients, is in discussions with investors to raise hundreds of millions of dollars at around a $5 billion valuation before the investment, according to two people with knowledge of the plans. The funding would nearly double Abridge’s last private valuation, announced three months ago.

At the same time, younger rival Ambience Healthcare is raising capital that would value the company at more than $1 billion, according to a person with knowledge of the matter, or more than triple its 2023 valuation. The discussions reflect investors’ interest in AI software that can reduce the time physicians and nurses spend writing visit notes and improve experiences for patients—say, by translating a patient’s responses in another language to English.