How People Are Using AI for Health
This episode covers major AI fundraising rounds including Anthropic's $10B raise at $350B valuation and XAI's $20B Series E, plus the launch of ChatGPT Health which leverages the fact that over 40 million users already discuss healthcare topics daily on the platform. The episode also discusses Google surpassing Apple to become the second most valuable company and various industry reactions to these developments.
- AI healthcare applications are experiencing massive organic adoption with over 5% of all ChatGPT messages being health-related, suggesting a natural product-market fit
- The scale of AI fundraising has reached historic levels, with private market appetite appearing unlimited for leading AI companies showing strong growth trajectories
- Data moats are becoming the new defensibility strategy, with ChatGPT Health designed to create switching costs through persistent health data integration
- AI is addressing critical healthcare system problems including doctor bandwidth limitations, fragmented care, and lack of preventative focus
- Market positioning battles are intensifying as Google's AI strategy execution is helping it challenge both Apple and potentially Nvidia for market leadership
"the only regret I have is that I didn't give him more money. Almost everything Elon is a part of, you really want to be a part of as well"
"This is a data mote play disguised as a feature launch"
"we don't really have a health care system, we have a sick care system"
"35 different digital health startups just died"
"AI products are all or nothing. Good ones require no focus. See coding and ChatGPT. No way to test without shipping to market. Keep shipping till you hit the next jackpot"
Today on the AI Daily Brief how people are using AI for health and before that in the headlines Wouldn't be another year in AI without billions of dollars in fundraising. The AI Daily Brief is a daily podcast and video about the most important news and discussions in AI. Alright friends, quick notes before we dive in. First of all, thank you to today's sponsors, Optimizely, Zencoder, Robots and Pencils and Super Intelligent. To get an ad free version of the show, which starts at 3 bucks a month, go to patreon.com aidailybrief or you can subscribe on Apple Podcasts. If you're interested in sponsoring the show, you can send us a Note @ SponsorsIDailyBrief AI and while you're @AidailyBrief AI, you also might notice something interesting here in our list of options, there is a new option called AI Strategy Compass Join the Beta Longtime listeners will have heard me talk frequently about Superintelligent, a platform that helps companies figure out what AI to use and where. But now we're taking what we do in a hands on and research intensive way and turning it into a platform that is effectively a power tool for AI strategists. So if you are someone who is responsible for AI transformation and AI adoption in your company, I want you to join this beta. I've only got a very small number of slots for this first wave, so again, if you are an AI strategist, anyone who's responsible for AI transformation and adoption, go to AIDAILY Brief AI Compass or just click on number 5 on AIDAILYBrief AI, fill out the form and we'll be in touch very soon. Now with that out of the way, let's get to today's episode. Welcome back to the AI Daily Brief Headlines edition. All the daily AI news you need in around five minutes. We kick off today with a slate of fundraising stories. 2026 appears to be every bit as active as 2025 was when it comes to massive amounts of private capital flowing into AI startup leaders. The first news is that anthropic is raising $10 billion at a $350 billion valuation. Now anthropic raising a bunch more money is not at all a surprise. Throughout the course of 2025 we saw their revenue accelerating at a rate even faster than OpenAI just yesterday. The entire episode was about how enamored of Claude Code and Opus 4.5 everyone is. So a big investment round was always in the cards at the same time. Doubling your valuation from just four months ago. It is a serious sign of strength. According to the Wall Street Journal, the round will be led by Kuatu and Singapore sovereign wealth fund gic. CNBC confirms that a term sheet has been signed with the round expected to close in the coming weeks. Now, one of the interesting questions is what this suggests for IPO prospects this year. One of not the only, but certainly one of the questions when it comes to whether Anthropic or OpenAI will decide to go public this year is just how much capital remains available to them in the private markets. Now I personally don't think that this is going to be a major deciding factor because I think that the appetite for getting a piece of these companies, especially if they continue to grow the way that they've been growing is, is basically unlimited. If anything, the only thing that I'm surprised about at this round is that they're only raising 10 billion and I would expect that if Anthropic stays on the trajectory that they're on that it will be just a very small handful of months before we see another round at an even higher valuation. That was not the only foundation model raise news this week. In fact, it wasn't even the biggest raise. This week XAI has announced that they've closed their Series E funding raising a massive 20 billion. The fundraising has been ongoing for months and although valuation was not disclosed, reports suggest the Post Money valuation is around quarter of a trillion. Once again, that would more than double the valuation established back in March of last year during the X merger. The deal was also upsized from the original 15 billion that Xai was seeking. Now at this point we're getting a little desensitized to the huge numbers in AI funding, so it is worth reinforcing that. This is in fact one of the largest fundraising rounds in history. OpenAI's year long SoftBank led fundraising round in 2025 was the largest venture round in history at 40 billion. Besides that, the largest AI fundraising round we've had was Anthropic's $13 billion Series F that closed last September. The investor list is also notable with longtime funder Valor Equity Partners leading the round. Stepstone, Fidelity, the Qatar Investment Authority, MGX and Barron Capital Group also all participated in the round. Nvidia and Cisco participated as strategic investors supporting XAI in quote, rapidly scaling our compute infrastructure and build out of the largest GPU clusters in the world. The fundraising announcement also had some big new claims about Xai's business. They said they ended 2025 with a million H100 GPU equivalents which is a big jump from the roughly half a million previously reported across the Colossus 1 and 2 data cent. The announcement also claimed 600 million monthly active users across the X and Grok apps. Now, this is a little difficult to compare to the Claude, ChatGPT and Gemini numbers. Given that, it's probably fair to assume that it skews towards X users that haven't really engaged with Grok, but it still certainly shows the distribution potential. And the distribution potential is very large. If nothing else, the deal cements Elon's records as one of the most effective fundraisers in the history of Silicon Valley. Speaking on the XAI fundraising back in October, Nvidia CEO Jensen Huang said, the only regret I have is that I didn't give him more money. Almost everything Elon is a part of, you really want to be a part of as well. Now, one interesting thread about the state of the conversation comes from Greg Eisenberg, who tweeted about the rounds and said temperature check Would you rather own stock in anthropic at a $350 billion valuation, OpenAI at an $830 billion valuation, or XAI at a $230 billion valuation? And while the results are obviously going to be skewed towards the X audience, the there were a lot of XAI and Anthropic responses. Now one more bit of fundraising news, which in any other world at any other period of time would be huge, but almost seems quaint compared to the numbers we were just discussing. LM arena has raised $150 million at a $1.7 billion valuation. This is the second venture round for the model benchmarking company since they decided to become a commercial startup. They previously raised a $100 million seed round in May that saw the company valued at 600 million, making this round, of course, almost a 3x in less than nine months. Prior to last year, L A Marina had been funded by a combination of grants and donations, operating as a research project in affiliation with UC Berkeley. Since its launch in 2023, the platform has grown exponentially to become a critical provider of model evaluations. Users rate model outputs head to head across text coding, image video and several other modalities. The platform now sees more than 5 million monthly users across 150 countries and processes more than 60 million AI conversations per month. The resulting leaderboards have become so critical to the public's perception of model quality that some labs have been accused of gaming the system with specially tuned models to rise up the RAN ranks. In September, LM arena launched their first commercial service called AI Evaluations, which allows enterprises, AI labs and developers to hire LM arena to perform bespoke evaluations using their community of users. The company says the service has gone from 0 to 30 million ARR over its first four months now. The takes on this one are wildly divergent. On the one hand, you have folks like AI Appreciator who says L Amarina is a poster child for the part of AI that's a bubble $1.7 billion valuation. Crazy. It's weak, low taste signal if you want to measure model quality. Rather, it measures user preference over a narrow set of prompts that doesn't reflect real world usage. On the other hand, you have Akash Gupta, who writes the headline here is 30 million ARR in four months, but I'm more interested in the business model Underneath, Ella Marina built something that feels impossible a crowdsourced evaluation platform that became the single biggest marketing lever in AI and then figured out how to charge the labs using it. He points out that the 7.5 million in revenue that they've commanded so far is is new revenue in a category that previously didn't exist. The real story, however, he says, is the flywheel they built. 35 million users show up to play a game. 2 anonymous AI responses pick your favorite those users generate 60 million conversations per month. That data becomes the most trusted benchmark in the industry. OpenAI, Google and XAI all need their models on that leaderboard, so they pay to get evaluated. The harder question, he says, is whether this holds. Ultimately, though, he points out, evaluation just became a billion dollar category. Now it's not just private investors who are excited about AI right now. Google has surpassed Apple to become the second most valuable company in the world. Wednesday's market action saw Google stock rise by 2.5% to reach a $3.9 trillion market cap, overtaking Apple for the first time since 2019. The flip was emblematic of how the two tech giants are navigating the AI era. Google used 2024 and 2025 to get fit, overhauling their AI org and releasing several groundbreaking models to catch up to the state of the art. Apple, on the other hand, suffered huge attrition in their AI staff, saw the resignation of their AI lead and still haven't released the Apple intelligence features they Showcased back in 2024. Looking ahead, the question will be whether Google can make a run at Nvidia to become the most valuable company in the world. They'll need another 18% gain to close that gap but some analysts think that's likely. Canacorn analyst Maria Rips maintained her buy rating on a Wednesday note and lifted her price target to reflect a further 21% gain. While Google executed well in 2025, they still have a ton of catalysts to roll out in this new year as well as they're launching their TPU chips as an external product for the first time, which presents challenges but also huge opportunities. But there's also other things, like their Waymo division hitting an inflection point as AI enabled self driving cars reach maturation. Some folks, including me in my 2026 predictions, think that this year Google will catch up and overtake the juggernaut that is Nvidia. Today, Google surpassed Apple to become the second biggest company in the world. Only a matter of time until they are number one. When, not if, if they stay on the trajectory they're on. I agree wholeheartedly. But for now, that is gonna do it for today's AI Daily Brief headlines. 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At Robots and Pencils, engineers, strategists, designers and applied AI specialists work together to move from idea to production without unnecessary friction. Powered by RoboWorks, their agentic acceleration platform teams deliver meaningful results, including initial launches in as little as 45 days, depending on scope. If your organization is ready to move faster, reduce complexity and turn AI ambition into real results, Robots and Pencils is built for that moment. Start the conversation@rootsandpencils.com AIDaily Brief that's robotsandpencils.comAIDaily Brief Today's episode is brought to you by Superintelligent. Superintelligent is a platform that, very simply put, is all about helping your company figure out how to use AI better. We deploy voice agents to interview people across your company, combine that with proprietary intelligence about what's working for other companies and give you a set of recommendations around use cases, change management initiatives that add up to an AI roadmap that can help you get value out of AI for your company. But now we want to empower the folks inside your team who are responsible for that transformation with an even more direct platform. Our forthcoming AI Strategy Compass tool is ready to start to be tested. This is a power tool for anyone who is responsible for AI adoption or AI transformation inside their companies. It's going to allow you to do a lot of the things that we do at superintelligent, but in a much more automated, self managed way and with a totally different cost structure. If you are interested in checking it out, go to aidailybrief AI Compass, fill out the form and we will be in touch soon. Welcome Back to the AI Daily Brief. ChatGPT has introduced ChatGPT Health and this is both surprising and not surprising all at once. It's surprising in the sense that there has seemed at times in the past to be questions around how OpenAI wanted to handle people using ChatGPT in this way. It has appeared that the company has had concerns around people looking to ChatGPT as an alternative to their GP or doctor and the potential legal implications for that type of use. But clearly something has shifted and they are ready to lean in now. Why it's not surprising is that this has seemed like a very big use case for some time and recent data that the company shared made it clear just how big a use case it is. Earlier in the week, OpenAI released a report called AI as a Healthcare How Americans Are Navigating the system with ChatGPT. In that report, they share that over 40 million weekly active users globally prompt about healthcare Every single day. 1 in 4 weekly active users prompt about healthcare each week, which for those doing the math is over 200 million users. Overall, more than 5% of all ChatGPT messages globally are about healthcare. And so what are they asking? 55% are using ChatGPT to check or explore symptoms, basically what we used to do with WebMD, 52% are using it to ask questions at any time of day. In other words, get fast information when you have a concern rather than having to wait for when your doctor is available, 48% are using it to understand medical terms or instructions given that medicine is in many cases a literal different language, and 44% are using it to learn about treatment options. OpenAI shares the truism that, as they put it, the healthcare system in the US is a long standing and worsening pain point for many. And outside of that high level data, there's even more interesting indications of just how powerful and in what ways AI can be a healthcare assistant based on anonymized ChatGPT message data, OpenAI found that nearly 2 million messages a week focus on health insurance. Specifically, that includes everything from comparing plans and understanding prices to handling claims and billing. In underserved communities, users send an average of nearly 600,000 healthcare related messages each week. It also appears that outside of regular hours thing really matters as 7 in 10 health conversations in ChatGPT happen outside of the normal hours that a clinic would be available. According to an OpenAI survey, three in five US adults report having used AI tools for health or healthcare issues in the past three months, and it actually really does seem like it's solving a problem. Digging deeper into this discovery that 600,000 health related messages are sent from users in underserved rural areas in the U.S. openAI in the U.S. about 1 in 5 people live in rural areas where populations skew older and face higher burdens of preventable disease and premature death. Inpatient care has become scarcer in rural communities since 2010, with 10 rural hospitals on average either closing or converting to models without inpatient beds each year. Financial pressure in these areas is widespread. Nearly 46% of all rural hospitals operate with negative margins, and more than 400 across 38 states are considered vulnerable to closure. AI, they write, will not on its own, reopen a shuttered hospital, restore a discontinued OB unit, or replace other critical but vanishing services. But it can make a near term contribution by helping people in underserved areas interpret information, prepare for care and navigate gaps in access, while helping rare clinicians reclaim time and reduce burnout. Now, speaking of healthcare professionals, the report also talks about how they're using AI. They found that between 2023 and 2024, the percentage of American physicians who reported using AI for at least one use case jumped from 38 to 66%. And that survey data shows that 46% of US nurses use AI at least once a week. The report closes with some ideas around how we could safely expand the use of AI in healthcare, including ideas like opening and securely connecting the world's medical data to speed up scientific discovery, supporting workers transitions into new healthcare professions that will be created and expanded by AI, and clarifying the regulatory pathway for AI medical devices for consumer use. So all of this came out on Monday of this week, pretty clearly setting up what happened next, which was the launch on Wednesday of ChatGPT Health. OpenAI's CEO of Applications, Fiji Simo wrote, The launch of ChatGPT Health is really personal for me. I know how hard it can be to navigate the healthcare system. Even with great care, AI can help patients and doctors with some of the biggest issues. She expanded on this in a larger blog post called what AI can do for a Broken System. She started with the personal story of being in a hospital for a kidney stone and a secondary infection that had developed after the resident in charge prescribed the usual antibiotic for that kind of infection. Fiji asked for a couple minutes before it was administered, she wrote, because I've been dealing with a chronic illness for years, I had already uploaded a lot of my health records into ChatGPT. I asked whether I should be taking this antibiotic given my medical history, and ChatGPT flagged that this particular antibiotic could reactivate a very serious infection I'd had a couple of years prior. She said that the resident was relieved and was glad Fiji had caught it, and when Fiji asked why it wasn't caught by someone at the hospital instead, the resident explained that she only has five minutes per patient when making rounds, and health records aren't organized in a way that would make that sort of risk clear. Fiji goes on to argue that within the context of four key problems with the healthcare system today, AI potentially has a role to play in addressing each one. The first is the problem she had just described, which is doctors not having enough bandwidth. AI has the potential to absorb much more information and help medical professionals make better decisions. It can also help that medical information be more understandable for the patients. The second problem, she writes, is that the healthcare system is fragmented, but health requires looking at the full picture. Once again, potentially, AI could be the repository for a much broader set of context. Then there's the issue of cost and access, which were explored extensively in the report that we just talked about. And finally, she writes, our healthcare model is reactive rather than preventative. Again, this is a known truism believed by many, regardless of political persuasion. But Fiji reminds According to the CDC, five of the top 10 causes of death in the US are associated with preventable and treatable chronic diseases. But our system is set up around going to see a doctor only when something is wrong. As some people have pointed out, we don't really have a health care system, we have a sick care system. Now, Fiji argues with AI, anyone can have a daily companion to support their health journey. So that's the why, but what is the What? What does ChatGPT Health actually include? First of all, it is a dedicated health experience inside the application. In the announcement post they write, you can now securely connect medical records and wellness apps like Apple health function and MyFitnessPal. So ChatGPT can help you understand recent test results, prepare for appointments with your doctor, get advice on how to approach your diet and workout routine, or understand the trade offs of different insurance options based on your healthcare patterns. The health section is going to be a dedicated space inside the application. They write that the conversations, connected apps and files associated with health are stored separately from all other chats and that health actually has separate memory distinct from everything else. And while ChatGPT can use context from non health chats to improve a health conversation, it cannot go the other way. Health information and memories do not flow back into non health chats and non health conversations can't access files, conversations or memories created within health. They also say that they built this in collaboration with more than 260 physicians who have practiced in 60 countries who have provided feedback on outputs over 600,000 times across 30 areas of focus. Now, right now this is not generally available. You have to sign up for a wait list. But people are already starting to weigh in. Simon Smith of Qlik Health wrote, I work in life sciences and ChatGPT health is a big deal. 1 it will be available to all users, 900 million plus people. 2 it will be secured for health use encrypted and isolated. 3 it will have key health app integrations and medical records, 4 it will be customizable with health specific instructions and 5 trusted 260 doctors have given feedback 600,000 times. He wrote. I personally use ChatGPT for health extensively. I have a health project and have uploaded loads of information into it including genetic information. I also update biometrics in that project monthly and having direct integration with Apple Health will be awesome. Now one of the things that people seem most excited about is the ability to correlate data from different sources. When Simon wrote question for Fiji, Simo or whoever is the product lead for ChatGPT Health, can I run custom analysis of Apple Health data with charts like can I ask a question like how do my daily steps correlate with how well I sleep and get a chart that cross references the data? Fiji said yes, you can definitely do this and then actually gave an example of a coworker asking exactly that. Simon reposted and said, I've tried to do biometric correlations in Apple Health but it's a pain in the butt. Fiji replied to say yes, we'll be able to run correlations right in ChatGPT Health. Very excited for this and this correlation seems to be a big deal. Morgan Linton asks, curious if this can pull in data from Whoop and Function Health and cross reference. That's the main thing that's been missing for me is connecting blood test results with sleep, exercise and heart rate data. Another reaction, of course, as with any launch from OpenAI, is about all the startups that just became redundant. Dalip Kumar writes, I meet dozens of AI health startups every week and can tell you this is a big deal. Most of them will become redundant once this gets adoption. Your medical triaging, nutrition, fitness training, rehab, mental health all in one place. Or as Dr. Danish put it, 35 different digital health startups just died. Another thread of commentary is about how this creates a new type of defensibility. Akash Gupta writes, this is a data mote play disguised as a feature launch. The numbers tell the story. He basically says, if so many people are already using ChatGPT for health, why build a special set of features? With the answer being because right now those conversations are ephemeral. Users upload a lab result, get an answer and the context evaporates. OpenAI can't train on it, can't personalize future responses, can't build compounding value. Connect your EHR and Apple Health now every conversation has continuity. Your lipid panel from April, your statin prescription from May, your flu shot from last year, all indexed all searchable all making the model more useful to you. Specifically, this creates a switching cost that's almost impossible to replicate. Google has search history, Meta has social graphs. OpenAI is building the health graph Simon Smith again points out people on X have been crapping all over OpenAI for months. Then ChatGPT Health Drops builds on and will expand. High health use will have huge beneficial impact and is hard to copy Privacy Security Regulatory not coming to Grok or Claude anytime soon Critics seem oddly quiet and yet, of course, it is not all that hard to find critics. One strand of criticism continues to be that OpenAI is not focused. Journalist Shaquille Hashim writes, my take from last summer that OpenAI is way too distracted to succeed continues to age beautifully. Timo Springer writes, it's no surprise that ChatGPT is struggling and losing market share. The product has become increasingly confusing. For about 18 months, features are launched and never touched again. Core workflows such as projects and GPTs perform significantly worse than competition. Newer features such as apps are brought to market half baked. ChatGPT urgently needs a cleanup and improvement of its core product. AI entrepreneur Ethan Ding, however, doesn't agree. He says this is a common take, but OpenAI's internal strategy is remarkably sound. AI products are all or nothing. Good ones require no focus. See coding and ChatGPT. No way to test without shipping to market. Keep shipping till you hit the next jackpot. Only jackpots can justify its valuation. Still, maybe the more obvious and potentially problematic critique is around privacy. Josh Long writes, so far, zero response from anyone at OpenAI regarding who@ the company can decrypt and view your health data and for what purposes. That's concerning, to say the least. And the vague claims about privacy and security in the blog post aren't helpful. Jonathan Schedler writes, you guys do what you want, but I'm a healthcare provider and there's no way I would upload my private medical data to an AI, and no way in hell I would upload mental health information. I am completely sympathetic to that point of view, and I'm sure that there will be many people who feel that way. But as someone who has spent a long time sitting around industries and projects that are convinced that people should care more about their privacy and data sovereignty than they actually do. I don't think there's any chance that in general, those types of concerns will stop people who want answers about their health from just uploading an utter boatload of information to this system, even even if others think they shouldn't. Now Obviously I am someone for whom my major use cases around AI are all for work. However, this is one where I'm about to go sign up for this wait list. I have vibe coded numerous applications to try to tweak around highly specific health goals that I have, and I'm very excited to see it natively built into ChatGPT. For now, that is going to do it for today's AI daily brief. Until next time. Peace.
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