K Health, an artificial intelligence company that offers a chatbot to assist patients before they consult with primary care physicians, has raised $50 million in an equity funding round. The round was led by Marcelo Claure’s Claure Group, as announced by CEO Allon Bloch in an interview. Other participants included Royalty Pharma Plc founder Pablo Legorreta, along with existing investors Mangrove Capital Partners, Valor Equity Partners, and Atreides Management LP.

The transaction values the New York-based K Health at approximately $900 million, according to sources familiar with the matter who requested anonymity due to the confidential nature of the information.

“About half the insured population in America are not managing their health well because they don’t have regular primary care. There are not enough physicians, and it’s tough to get appointments,” said Bloch.

The new funding will be used to enhance the company’s AI capabilities and facilitate growth across the U.S., including integrating with additional health systems, Bloch stated.

Marcelo Claure, a former SoftBank Group Corp. executive, serves as co-chair of an advisory council for Harvard’s Digital Data Design Institute, a group established to oversee the future reinvention of AI-driven and digital businesses. In an interview, Claure noted that healthcare emerged as the top area where AI could have an immediate impact during his research on AI's potential applications.

“There’s so much hype around AI, it’s hard to figure out which startups will reap the benefits and be able to solve the world’s problems,” Claure said. He praised K Health for its tangible progress, describing it as a “co-pilot” that aids doctors in making personalized diagnoses and treatment plans. Claure was particularly impressed by K Health's use of anonymized patient data from the Mayo Clinic and Israel’s Maccabi Healthcare Services, as well as its integration with electronic medical records.

“Primary care physicians are key to the healthcare ecosystem; this is where it all starts,” Claure said. “If doctors can be more efficient, they can see more patients.”