OpenAI and Anthropic are making significant strides in the healthcare sector, especially highlighted during the J.P. Morgan Healthcare Conference. OpenAI launched ChatGPT Health, allowing consumers to connect with their medical records and wellness apps, and introduced OpenAI for Healthcare, which offers HIPAA-compliant tools for hospitals. They also acquired Torch for around $100 million. Anthropic countered with Claude for Healthcare, emphasizing its potential to connect healthcare professionals with industry data for research. Both companies aim to integrate their technology into existing healthcare systems rather than replace them. The announcements benefit various players in the health tech ecosystem. Startups like Function Health have gained visibility, while wellness companies, such as Oura and Whoop, are likely to thrive due to the increased relevance of their data in broader health contexts. Conversely, startups that bundle health information for large language models (LLMs) face challenges. Investors note that companies lacking defensible positions are becoming less attractive, particularly those merely automating workflows without unique offerings. On the competitive front, both OpenAI and Anthropic will raise the bar for startups, especially in the enterprise space. Companies like Doximity may find pressure as these AI tools become more prevalent. Although Anthropic focuses on enterprise solutions, OpenAI still has a strong consumer association, which they aim to shift. OpenAI claims that healthcare is a rapidly growing segment of their enterprise business, driven largely by consumer demand for tools in hospitals and clinics.