**Urgent Update: AI Dominates HLTH Conference Amid Bubble Fears**

UPDATE: The HLTH conference in Las Vegas has become a battleground for healthcare AI, showcasing a surge of startups and established giants amidst growing concerns of an AI bubble. This year’s event, taking place from October 15-17, 2025, has ignited intense discussions over the rapid proliferation of AI solutions, with executives expressing both excitement and fatigue.

Nearly every company at HLTH, including notable names like Jorie AI and Suki, prominently featured AI innovations. However, the atmosphere was charged with anxiety as healthcare leaders grappled with the implications of a market flooded with AI offerings. “Everyone is framing themselves as the most generic, enterprise-wide agentic AI solution,” lamented a health system executive, reflecting a growing sense of dissatisfaction among attendees.

This year, healthcare startups attracted a staggering $6.4 billion in venture capital in the first half of 2025, with over 62% of that funding directed toward AI initiatives, according to Rock Health. Yet, established players like Epic, despite their absence from the conference floor, loom large as they prepare to introduce their own AI tools, including a new AI scribe.

The presence of OpenAI was felt prominently as Nate Gross, the new healthcare lead, took the stage alongside tech titans like Microsoft and Google. His remarks hinted at OpenAI’s potential healthcare ambitions, although specifics were scarce. As he noted, “ChatGPT now sees around 800 million active users per week,” emphasizing the competitive landscape that healthcare startups face.

As the three-day conference continued, the show floor showcased a sprawling “AI Zone” filled with booths boasting AI solutions. Companies like Innovaccer and SoundHound promoted their AI-driven technologies, yet many attendees voiced frustration at the repetitive nature of the pitches. Critics argue that the saturation of AI claims could dilute genuine innovation.

Despite the challenges, some investors remain optimistic. Dr. Brenton Fargnoli of Lightspeed Venture Partners pointed out that certain startups are achieving unprecedented growth. However, concerns linger that incumbents like Epic and emerging players like OpenAI could disrupt their prospects, leading to a potential shake-up in the healthcare AI sector.

Amidst the glitz of the Venetian Resort, where the conference is hosted, attendees engaged in networking activities, including pickleball and casual meet-ups, fostering a sense of community. “It’s like the Dreamforce of healthcare,” remarked Karen Knudsen, CEO of the Parker Institute for Cancer Immunotherapy. Yet, the overarching sentiment of AI fatigue remains palpable among many.

One notable highlight was the announcement from medical AI search startup OpenEvidence, which secured $200 million at a $6 billion valuation, marking the largest funding round revealed at HLTH. Meanwhile, Hyro raised $45 million to enhance its responsible AI platform, demonstrating the strong investor interest in healthcare AI solutions.

As AI continues to permeate every aspect of healthcare, the stakes have never been higher. The conversation around responsible AI development is gaining traction, with organizations like Spring Health and the American Heart Association taking proactive steps to ensure ethical practices in AI deployment.

Looking ahead, the healthcare industry must navigate the evolving landscape of AI with caution. As the conference draws to a close, stakeholders will be watching closely to see how the current dynamics will reshape the future of healthcare technology.