Hippocratic AI Fires International Sales Team, Exposing Further Cracks
Things spiral out of control as the Theranos playbook becomes impossible to ignore.
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I have no financial interest in Hippocratic AI, General Catalyst, or any of their investors.
Just a few weeks ago, I published “Theranos 2.0”—my months long investigation into how Hippocratic AI became the most expensive AI company on the planet with virtually zero revenue to show for it. At $3.5B post-money and an ARR of $17–20M, Hippocratic is trading at a 200x+ revenue multiple. Higher than OpenAI. Higher than Anthropic. Higher than Nvidia. Higher than anything real.
I thought that was the bottom. I was wrong…
By the way, after three years of investigating bad actors such as Hippocratic AI, I’ll be sharing what I’ve learned in a talk called “How to Spot the Next Theranos in Healthcare AI.” I’ll first be speaking in Vilnius, Lithuania, at a Health2Tech event on May 6, and then at the Digital Health & AI Innovation Summit in Boston on June 8-9. If you can make it to either event, I’d be happy to meet you.
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Alright, back to Theranos... I mean, Hippocratic AI.
Since “Theranos 2.0” published, things at Hippocratic have gotten materially worse. I’ve continued talking to sources inside and around the company, and the picture they’re painting is no longer just a valuation problem. It’s a business-model implosion happening in real time. Munjal Shah and Hemant Taneja are not just running an inflated company. They’re now actively withdrawing from entire markets, firing the sales teams who sold those markets, and desperately pivoting to a new story because the old one stopped working.
Let me walk you through what I’ve learned.
TL;DR:
1. The Quick Recap on Hippocratic AI — In Case You Missed It
2. Hippocratic AI Terminates Every International Contract
3. The Desperate Analytics Pivot
4. Clients Are Peeling Off. WellSpan Is Stuck on the Sinking Ship.
5. The Cash Burn Is Accelerating
6. Scenarios for Where This Mess Could Go Next
1. The Quick Recap on Hippocratic AI — In Case You Missed It
Before we get to the new stuff, here’s the one-paragraph version of where we left off:
Hippocratic AI raised Series C at a $3.5B post-money valuation in November 2025, up from $1.64B in January 2025 and $520M in September 2024—a 6x jump in one year with no new product and no new meaningful customers! Revenue is an estimated $17–20M ARR. Burn rate is $404M.
More than 80% of AI-guided calls come from a single client.
Hippocratic AI (allegedly) steals from its customers.
The company’s biggest “customers” are also its biggest investors: WellSpan, Cincinnati Children’s, Universal Health Services. It is a textbook conflict of interest and, frankly, something the SEC should be reading very carefully.
Founders own 15%. Employees hold 10%. VCs and health systems control 75%. Founders have been cashing out at secondary offerings while employees sit on frozen, still-vesting shares they paid for out of pocket.
That was the story on November 6. It has deteriorated since:
