Palo Alto, CA
Penguin AI, a healthcare technology company focused on using artificial intelligence to reduce administrative burdens, announced today that it has secured $29.7 million in venture funding to expand its AI platform for payers and providers. The Series A round was led by Greycroft with participation from UPMC Enterprises, SemperVirens, Snowflake Ventures, Watershed Ventures, Horizon Mutual Holdings, and other early-stage investors.
Founded by Fawad Butt, former Chief Data Officer at UnitedHealthcare, Kaiser Permanente, and Optum, Penguin AI aims to streamline complex healthcare workflows that currently cost the industry billions annually. Its platform leverages generative AI, task-specific Small Language Models (SLMs), Digital Workers, and AI agents to automate processes such as prior authorizations, claims adjudication, medical records summarization, appeals management, and risk adjustment.
“The healthcare system spends a tremendous amount on administrative tasks, diverting resources from patient care,” said Butt, Penguin AI’s CEO. “By applying AI across these workflows, we can significantly cut costs, reduce errors, and free healthcare professionals to focus on patients.”
Penguin AI’s platform integrates AI models and digital agents to provide a full-service solution for healthcare administration, allowing organizations to deploy pre-built models or customize workflows for specific operational needs. Early partnerships with health plans, providers, and technology firms have already demonstrated its potential to improve efficiency and accuracy.
Investors highlighted Penguin AI’s founder-led expertise and enterprise-ready technology as key reasons for their support.
“Penguin AI is addressing one of healthcare’s largest inefficiency gaps with a platform built from the ground up for this industry,” said Mark Terbeek, partner at Greycroft. “Their approach promises to accelerate adoption of AI and drive meaningful outcomes for providers and patients alike.”
The funding will be used to expand the team, accelerate product development, and scale deployments with healthcare organizations across the U.S. and globally.
About Penguin AI
Penguin AI develops enterprise-grade artificial intelligence solutions for healthcare payers and providers. Its platform combines generative AI, specialized language models, and digital workflow agents to automate high-volume administrative processes, reduce operational costs, and improve accuracy. Founded by industry veterans, Penguin AI is focused on reducing the $1 trillion annual cost of administrative inefficiencies in healthcare.
For more information, visit www.penguinai.co.
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