Key Points:
- Amazon Web Services and General Catalyst are together working on a five-year agreement to fast-track the development and adoption of artificial intelligence healthcare tools.
- Portfolio companies of General Catalyst, starting with Aidoc and Commure, will utilize AWS services to build new solutions financial terms were disclosed.AWS’s Dan Sheeran stated, “Healthcare system leaders who want to realize the benefits of AI now have an easier way to get it done.”
- On Monday, Amazon Web Services and venture capital firm General Catalyst revealed a new multi-year partnership as part of their efforts to capture a share of the growing healthcare AI market.
Through the collaboration, General Catalyst portfolio companies will use AWS services to accelerate the creation and rollout of AI tools for healthcare systems. The first two companies involved are Aidoc, which applies AI in medical imaging, and Commure, which automates provider workflows with AI.
AWS and General Catalyst have refused to disclose the financial details of the agreement.
Chris Bischoff, Head of Global Healthcare Investments at General Catalyst, told CNBC, “Without strong partners like Amazon and AWS standing with these companies, co-developing and supporting them… this wouldn’t progress as quickly as we expect.”
Healthcare System Strain and the Appeal of AI Startups
The U.S. healthcare system is under strain, with staff burnout, increasing labor shortages, and tight margins. These challenges often attract entrepreneurial tech startups, especially since the multi-trillion-dollar healthcare industry offers significant financial returns.
Hospitals operate in a complex, tech-fatigued, and highly regulated space, making it difficult for startups to enter. General Catalyst hopes that by leveraging AWS resources like computing power, it can help its companies speed up the development and market entry process.
General Catalyst’s Track Record in Healthcare
General Catalyst is no stranger to making significant changes in healthcare. According to a December report from PitchBook, the firm has made more than 60 digital health deals since 2020, ranking just behind Gengels and Alumni Ventures. In January 2024, General Catalyst shocked the industry by announcing its plans to acquire an Ohio-based healthcare system through its new business, Health Assurance Transformation Company – an unprecedented move in venture capital.
Why AWS is an Attractive Partner
Dan Sheeran, General Manager of Healthcare and Life Sciences at AWS, told CNBC that General Catalyst’s “deep understanding” of healthcare systems’ financial and operational realities made it an attractive partner for AWS. Sheeran and Bischoff began outlining the collaboration after meeting in London nearly nine months ago.
AWS already has a strong presence in the healthcare sector. According to a statement, the company provides more healthcare and life sciences-specific services than any other cloud provider. It has formed high-profile AI partnerships with companies like GE Healthcare and Philips in the past year.
AI Tools from Aidoc and Commure Coming in 2025
Sheeran noted that the partnership between General Catalyst and AWS will last for years, but new tools from Aidoc and Commure are expected to roll out in 2025. Aidoc is exploring how to use the cloud to tap into data in pathology, cardiology, genomics, and other molecular information areas.
Sheeran added that Aidoc and Commure were chosen to kick off the collaboration because they have established product-market fit, are operational, and focus on high-priority issues for AWS customers.
A Strategic Approach to Transforming Healthcare Systems
Bischoff said, “GC has spent a lot of time thinking about how healthcare systems can transform themselves, and we believe it won’t happen through 1,000 companies. We need truly enterprise-grade solutions.” “Amazon shares the same approach, which is why we’re starting with these two.”
Although the partnership between General Catalyst and AWS is still in its early stages, both organizations believe it will help meet the growing market demand for new solutions.
Sheeran concluded, “Healthcare system leaders who want to realize the benefits of AI now have an easier way to do so.”
