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AI Healthcare: From $22 Billion Boom to $10 Billion Reality Hit

Gold Rush

2 min readSep 11, 2025

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Source: Pitchbook

In 2021, investors poured more than $22 billion into AI healthcare startups. By 2023, investment had dropped to just over $10 billion.

It looked like a gold rush at first, but suddenly cooled down.

Today, the market is in the new phase of stability.

Was that $22B surge in AI Healthcare Startups just hype? Was the $10B fall a collapse, or simply a reset? And most importantly: what does this tell us about the future of medicine and markets?

The story of AI Healthcare isn’t simple as it seems.

It is a loop of boom, pullback, and stabilization.

Behind the figures are mega deals, high profile failures, BigTech competition, and the rise of companies that consistently provide value and that may outlast the hype.

On my Substack, I talked about this cycle in detail, from Neuralink’s moonshot to why hospitals resisted new AI tools, to where investors are placing their bets today in biotech, healthtech, and medtech sectors.

If you are curious about where AI and Healthcare is heading, read full story on my Healthcare Capital newsletter. I publish one article, each week. You can join here:

Thank you

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Open Source X
Open Source X

Published in Open Source X

Talk about anything & everything that touches your life — you choose the topic

Rabinder Kumar
Rabinder Kumar

Written by Rabinder Kumar

Finance | Investing | History | Psychology| Physiotherapist | MedTech MSc 📖 Exploring markets, minds & history. . For gigs: rabinderkumarr@gmail.com

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