Is Ambience Healthcare profitable?

No profitability figures are disclosed. Ambience is VC-backed with estimated ARR of about $30M as of May 2025 (up from ~$19M end of 2024, per Sacra estimate), and just raised $243M in a Series C in July 2025, suggesting it is still growth-stage and burning capital rather than profitable.

Could AI replace Ambience Healthcare's own product?

Ambience is itself an AI product replacing manual note-taking, but its base ambient-scribing layer is being commoditized: Epic shipped a free AI Charting feature in February 2026 and Microsoft cut Dragon Copilot pricing about 57% by May 2026, both threatening Ambience's pricing power directly.

Who owns Ambience Healthcare?

Ambience Healthcare is privately held and VC-backed, founded in 2020 by CEO Mike Ng and Nikhil Buduma. It raised a $243M Series C in July 2025 co-led by Oak HC/FT and Andreessen Horowitz, with OpenAI Startup Fund and Kleiner Perkins also investors, reaching roughly $1.0 to $1.25B valuation.

Who is Ambience Healthcare's biggest competitor?

Ambience holds roughly 13% of the ambient clinical scribing market as of October 2025, well behind Abridge (~30%, valued at $5.3B) and Microsoft's Nuance/Dragon Copilot (~33%), making it a distant third-place contender in its own category, per Menlo Ventures research.

How much funding has Ambience Healthcare raised?

Ambience has raised roughly $319 to 345M total across a $6.3M seed (Sept 2020), $70M Series B (Feb 2024, led by OpenAI Startup Fund), and a $243M Series C announced July 29, 2025, pushing its valuation to approximately $1.0 to $1.25B.

What is Ambience Healthcare's flagship customer contract?

Cleveland Clinic signed an exclusive 5-year contract with Ambience following a 6-month, 5-vendor pilot covering 80+ specialties, with rollout beginning February 19, 2025, making it Ambience's flagship enterprise reference account.

AI companies and labs · United States

Ambience Healthcare

ambiencehealthcare.com ↗

AI scribe that listens to doctor visits and writes the medical note for them.

Losing its protection

Assessed 21 July 2026 · Evidence as of 21 July 2026

The structural protection is eroding.

On the recordSince 21 July 2026 · Checkable from 2026-2027 · Every call on the record Checkpoint: Cleveland Clinic contract renewal and specialty rollout milestones test whether hospitals stay past Epic's free tier

The call

Ambience has a real hospital contract and real revenue, but sits third in a market where the record-system owner just made the basic version free.

Ambience Healthcare makes software that listens to doctor-patient conversations and writes down what happened, saving doctors time on paperwork. The company has real customers, including Cleveland Clinic, and brings in $30 million a year. But in early 2026, Epic, the giant company that runs most hospital computer systems, released its own free AI note-writing tool, and Microsoft cut prices on its competing product in half. Ambience is now the third-place player in this market, and the big question is whether hospitals will keep paying for Ambience when their existing software vendors are giving away similar tools for free or charging much less. The company is betting that its special skills in medical coding and complex medical situations are worth extra money, but the next few times its contracts come up for renewal will show whether that bet was right.

Why

AI pressure: Epic Systems AI Charting. Epic bundled a free AI charting tool into the record system most hospitals already run, cutting the reason to pay Ambience. Could AI do the core job? Only partly.

Bigger players: Microsoft Dragon Copilot. Microsoft cut Dragon Copilot pricing 57% by May 2026, undercutting Ambience on price while owning the EHR relationship at scale. Could a giant copy it? Yes, easily.

What protects it. Coding accuracy tools and 100 plus specialty templates that Epic's free version does not yet match, plus a signed five year Cleveland Clinic deal.

What would change this call

Whether Ambience reports net-new health-system logos through 2026 after Epic's free tool launched. Shows whether Ambience's premium coding layer still wins deals against free bundled Epic option.
Cleveland Clinic's public statements or contract news at its 5-year renewal milestones. Tests whether the flagship exclusive contract holds or gets renegotiated on price.
Ambience's next funding round size, valuation, or headcount trend versus Abridge's $5.3B raise. Indicates whether investors see Ambience closing or falling further behind market leaders.

Key numbers

$30M ARR as of May 2025 (2025-05-31)
Ambience holds ~13% of ambient scribing share (2025-10-21)
Abridge and Microsoft each hold ~30-33% share (2025-10-21)

Named risks

Epic's free bundled AI Charting could commoditize base scribing and erode new-logo pipeline. Severity: high
Microsoft's steep Dragon Copilot price cuts pressure Ambience's enterprise pricing power. Severity: high
Distant #3 market position (~13% share) behind Abridge and Microsoft limits pricing leverage. Severity: medium
Key performance metrics (utilization, NPS, coding accuracy) are self-reported, not independently audited. Severity: medium

Rivals, as read in July 2026

Rival	Direction	Evidence
Epic Systems	gaining on	Shipped free AI Charting to existing Epic customers, Feb 2026
Microsoft (Dragon Copilot / Nuance)	gaining on	Cut per-user pricing ~57% by May 2026 while holding ~33% ambient scribing share
Abridge	losing to	Holds ~30% ambient scribing share vs Ambience ~13% as of Oct 2025, valued at $5.3B

Questions people ask

Is Ambience Healthcare profitable?: No profitability figures are disclosed. Ambience is VC-backed with estimated ARR of about $30M as of May 2025 (up from ~$19M end of 2024, per Sacra estimate), and just raised $243M in a Series C in July 2025, suggesting it is still growth-stage and burning capital rather than profitable.
Could AI replace Ambience Healthcare's own product?: Ambience is itself an AI product replacing manual note-taking, but its base ambient-scribing layer is being commoditized: Epic shipped a free AI Charting feature in February 2026 and Microsoft cut Dragon Copilot pricing about 57% by May 2026, both threatening Ambience's pricing power directly.
Who owns Ambience Healthcare?: Ambience Healthcare is privately held and VC-backed, founded in 2020 by CEO Mike Ng and Nikhil Buduma. It raised a $243M Series C in July 2025 co-led by Oak HC/FT and Andreessen Horowitz, with OpenAI Startup Fund and Kleiner Perkins also investors, reaching roughly $1.0 to $1.25B valuation.
Who is Ambience Healthcare's biggest competitor?: Ambience holds roughly 13% of the ambient clinical scribing market as of October 2025, well behind Abridge (~30%, valued at $5.3B) and Microsoft's Nuance/Dragon Copilot (~33%), making it a distant third-place contender in its own category, per Menlo Ventures research.
How much funding has Ambience Healthcare raised?: Ambience has raised roughly $319 to 345M total across a $6.3M seed (Sept 2020), $70M Series B (Feb 2024, led by OpenAI Startup Fund), and a $243M Series C announced July 29, 2025, pushing its valuation to approximately $1.0 to $1.25B.
What is Ambience Healthcare's flagship customer contract?: Cleveland Clinic signed an exclusive 5-year contract with Ambience following a 6-month, 5-vendor pilot covering 80+ specialties, with rollout beginning February 19, 2025, making it Ambience's flagship enterprise reference account.

Timeline

2026-05Microsoft cuts Dragon Copilot per-user pricing by about 57%
2026-02Epic launches free AI Charting feature for existing Epic customers
2025-07-29Ambience raises $243M Series C led by Oak HC/FT and a16z, valuation ~$1.25B
2025-06-24Ambience launches Patient Summary pre-visit chart summarization at St. Luke's Health System
2025-05-27Ambience claims ICD-10 coding model beats physician accuracy by 27%, 40+ health systems
2025-02-19Cleveland Clinic announces exclusive 5-year rollout of Ambience's AI platform
2024-02Ambience raises $70M Series B led by OpenAI Startup Fund
2020-09Ambience raises $6.3M seed round
2020Ambience Healthcare founded by Mike Ng and Nikhil Buduma

Revision history

21 July 2026

First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.

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