The AI Podcast — “AI Wellness Demand Reaches New Highs After Funding Round”
Date: November 21, 2025
Host: The AI Podcast
Main Topic: The surge in AI-driven wellness solutions, with a focus on Function Health’s latest $298 million funding round and their new Medical Intelligence Lab.
Episode Overview
This episode dives deep into the intersection of AI and healthcare, spotlighting how Function Health is using artificial intelligence and massive new funding to transform personalized health management. The host unpacks Function Health’s recent $2.5 billion valuation, explores what sets their platform apart from competitors, and discusses both opportunities and challenges in data security, healthcare integration, and user trust.
Key Discussion Points & Insights
1. AI’s Transformative Impact on Healthcare
- Opportunities:
- Making healthcare more affordable
- Improving quality in diagnostics and drug discovery
- Saving doctors time, enabling them to focus more on patients and personal lives
- Quote:
“AI enables so much in healthcare and I'm really excited about that.” — Host [00:29]
2. Function Health — Ambition and Scale
- Business Milestone:
- Raised $298 million in Series B, now valued at $2.5 billion
- Total funding to date: $350 million
- Major investors include Redpoint Ventures (Series B lead), A16Z, Anglais Ventures, Alumni Ventures, NBA athletes, the Roku founder, and Daniel Gross’s investment firm
- Stand-out funding and backer breadth signal broad confidence
- Quote:
“This is not a small company. They have grown a ton.” — Host [01:44]
3. Function Health Product Offering
- Key Features:
- Regular lab testing and health tracking service
- Aggregates data from wearables, lab results, and health records
- Feeds consolidated data into an AI model for actionable insights
- New “Medical Intelligence Lab”: a generative AI model, trained by doctors, providing personalized insights
- Device-agnostic approach—integrates with multiple devices and third-party data sources
- Users can get lab work at over 2,000 Quest Diagnostics locations; 50+ million tests completed since 2023
- Quote:
“They want to be able to essentially help you consolidate health data and make it usable for a lot of different things.” — Host [02:20]
“Basically, this is them trying to build a medical intelligence generative AI model... to provide personalized health insights based on your data.” — Host [04:16]
4. AI-Powered Personalized Health Assistants
- Functionality:
- Customers get AI-powered chatbots capable of accessing entire health histories, previous lab results, and doctor’s notes
- Chatbot can answer health questions with a context-aware, personalized lens
- Host’s anecdote: used ChatGPT for advice after a stomach ache, but sees the leap Function Health’s assistant could offer with complete health context
- Quote:
“Think of how amazing it would be if… there was an AI model that literally knew all of your health metrics.” — Host [05:37]
5. Data Privacy & Security Concerns
- Privacy Protocols:
- HIPAA compliant
- Data fully encrypted, never sold, identity protected
- Commitment to keeping user data safe
- Skepticism:
- Public remains cautious due to high-profile data breaches (e.g., 23andMe), company bankruptcies and foreign acquisitions
- Protecting genetic and medical information is a major concern and barrier to widespread adoption
- Notable CEO Quote:
“It's not good enough to be in a world where AI exists and not be applying it to your health… The objective of Function Health is to apply the best available technology to human health.” — Jonathan Swerlin (Function Health CEO) [06:24]
“Your data and your identity are never for sale. Every bit of your information is fully encrypted and protected.” — Jonathan Swerlin [06:52]
6. Leadership and Technical Edge
- Chief Medical Scientists:
- Dr. Dan Sotakinson (co-founder, CMO) and Dr. Mark Hyman
- Development led by doctors and engineers—a unique selling point for the AI model’s credibility
- Competitive Moat:
- Unique data sets, physician-driven model training foster competitive advantage
- Differentiation from other players (e.g., Superpower, NICO Health, Inside Tracker) through device-agnostic integration and physician involvement
- Quote:
“If you have access to unique data sets and... doctors, that's a really good barrier to entry and a really good moat.” — Host [08:07]
Notable Quotes & Memorable Moments
-
On Healthcare AI’s Promise:
“AI enables so much in healthcare and I'm really excited about that.” — Host [00:29]
-
On Personalized AI Health Assistants:
“Think of how amazing it would be if beyond just talking to ChatGPT... there was an AI model that literally knew all of your health metrics.” — Host [05:37]
-
On Data Security:
“Your data and your identity are never for sale. Every bit of your information is fully encrypted and protected. We are committed to keeping you and your data safe.” — Jonathan Swerlin [06:52]
-
On Overcoming Market Skepticism:
“I think a lot of people have a bad taste in their mouth left over from companies like 23andMe... I think there's a lot of areas where people are quite skeptical and so they have a lot of barriers to overcome.” — Host [07:23]
Timestamps for Important Segments
- [00:29] — Introduction to AI’s opportunities in healthcare
- [01:44] — Function Health’s funding milestone overview
- [02:20] — Description of Function Health’s service and technology approach
- [04:16] — Launch of “Medical Intelligence Lab” and personalized AI support
- [05:37] — Host’s anecdote about using ChatGPT for medical questions
- [06:24] — Function Health CEO quote on AI’s necessity in health
- [06:52] — Data security and privacy assurances
- [08:07] — The significance of unique data and expert involvement as a moat
Summary
This episode provides a thorough, energetic look at the convergence of AI and wellness, embodying cautious optimism. Function Health’s enormous funding and momentum reflect growing trust in AI-powered health platforms. However, longstanding concerns around data security and past industry missteps still loom. By blending robust privacy protocols, deep medical involvement, and an inclusive, device-agnostic ecosystem, Function Health aims to shape proactive, personalized healthcare for the AI era.