OpenAI has acquired a small health-technology startup called Torch in a move that highlights its growing interest in healthcare. Although OpenAI did not officially reveal the purchase price, industry sources estimate the deal value to be between $60 million and $100 million.
Torch is a four-person startup focused on organizing medical information so artificial intelligence can understand it. The company described its technology as a “unified medical memory,” designed to bring together scattered health records from hospitals, labs, wearable devices, and wellness apps into one continuous system.
This technology will now support ChatGPT Health, OpenAI’s new platform that allows users to connect their medical records and wellness tools directly to ChatGPT.
Why Torch Was Valuable to OpenAI
Healthcare data is often fragmented. One hospital stores records one way, labs use another system, and wearable devices keep information in separate apps. For both patients and doctors, this makes it hard to see a complete health picture.
Torch was solving this problem by building software that could connect all those sources into one organized timeline. For AI, this kind of structure is essential. Without clean and connected data, even advanced systems cannot provide reliable insights.
By acquiring Torch, OpenAI gains both the technology and the team behind it. All Torch employees will now join OpenAI, the companies confirmed.
Torch CEO Ilya Abyzov said he believes OpenAI offers the best platform to scale their ideas to millions of users around the world.
From Forward Health to OpenAI
The Torch founders previously worked at Forward Health, a well-known healthcare startup that operated tech-enabled clinics. Forward raised over $400 million but suddenly shut down in 2024, leaving many employees searching for new opportunities.
Torch became a fresh start for that team. Instead of building physical clinics, they focused on digital health infrastructure. Now, their work will live inside OpenAI’s ecosystem.
ChatGPT Health and the Bigger Plan
OpenAI recently introduced ChatGPT Health as a new experience focused on medical and wellness support. Users can connect test results, fitness data, and medical histories so ChatGPT can help explain reports, track conditions, and prepare for doctor visits.
Torch’s technology fits directly into this vision. Instead of users uploading files manually, OpenAI can now build long-term health timelines that update automatically across multiple sources.
OpenAI is also expanding into enterprise healthcare. It has announced partnerships with major hospital systems and launched tools for doctors and healthcare organizations.
A Pattern of Strategic Acquisitions
Torch is not OpenAI’s first acquisition in 2025. The company has been actively buying startups that strengthen different parts of its product ecosystem. Its biggest deal this year was the purchase of Jony Ive’s AI device company io for more than $6 billion.
Compared to that, Torch is a small deal. But small acquisitions often deliver the most practical value. Torch brings highly specialized knowledge in handling medical data, which is critical for any healthcare AI system.
OpenAI also recently hired a former Google executive to lead corporate development, signaling that more acquisitions are likely in the future.
What This Means for Investors
For investors, this deal shows that OpenAI is positioning itself for long-term growth in healthcare. Healthcare is one of the world’s largest industries, and AI has the potential to reduce costs, improve diagnosis, and increase patient understanding.
By starting with data organization rather than flashy consumer tools, OpenAI is building a strong foundation. If ChatGPT Health becomes widely trusted, it could evolve into a daily health assistant for millions of people.
However, the risks are real. Health data privacy, regulatory approval, and competition from companies like Google, Apple, Microsoft, and Amazon will all shape OpenAI’s success in this sector.
Still, Torch gives OpenAI a critical building block in its healthcare strategy.
A Small Team With a Big Impact
Torch may only have four employees, but its technology solves one of healthcare’s biggest problems: disconnected data. With OpenAI’s resources, this solution can now scale globally.
The acquisition shows that in the AI era, value is not measured by company size, but by how essential the technology is to the future.
Read also:
Top Blockchain Platforms and Payment Startups to Watch in 2026