AI Drives Investment and Acquisitions in Medical Technology Sector

Artificial intelligence (AI) is emerging as a key driver of investment and acquisition activity in the medical technology sector in 2025, with AI-focused companies attracting significant funding and becoming prime targets for mergers and acquisitions.

Funding Rounds Favor AI Startups

Despite a decrease in the overall number of funding rounds in the first half of 2025, investors have shown a clear preference for AI startups in the medical technology space. This trend is highlighted by a recent report from PitchBook, which indicates that AI-enabled medical device companies are outperforming other segments in attracting capital.

A notable example of this trend is Aidoc, which secured a substantial $150 million in funding earlier this month. The company plans to use this investment to develop an AI foundation model, further cementing the importance of artificial intelligence in the future of medical technology.

Strategic Acquisitions Bolster AI Portfolios

The medical technology sector has also seen a surge in acquisitions centered around AI capabilities. In August, Tempus made a significant move by agreeing to acquire Paige, a company specializing in digital pathology software, for $81 million. This acquisition underscores the growing importance of AI in diagnostic tools and pathology analysis.

More recently, GE Healthcare has announced plans to expand its AI portfolio through the acquisition of Icometrix, a firm known for its brain MRI software. This strategic move demonstrates the ongoing efforts of established medical technology companies to integrate advanced AI capabilities into their existing product lines.

These developments collectively paint a picture of a medical technology landscape increasingly dominated by AI-driven innovations, with both investors and established companies recognizing the transformative potential of artificial intelligence in healthcare.