Devoted Health Eyes $25B Valuation as Medicare Advantage AI Bet Heats Up

Devoted Health, the Medicare Advantage startup co-founded by former U.S. CTO Todd Park and his brother Ed Park, is in talks to raise a new funding round that would value the company at $25 billion — a dramatic jump from its $16 billion valuation set just earlier this year. The back-to-back fundraises signal intense investor appetite for AI-powered healthcare companies operating in one of the federal government's biggest spending arenas.

Founded in 2017 and headquartered in Waltham, Massachusetts, Devoted combines health insurance with direct medical care for seniors enrolled in Medicare Advantage. Its proprietary AI platform, called Orinoco, helps coordinate care for members — a capability investors increasingly view as a structural cost and quality advantage in a market defined by thin margins and complex patient needs.

The company's growth numbers back up the enthusiasm. Devoted reported 466,000 members as of January 2026, representing a staggering 121% year-over-year increase. It generates revenue primarily through government-funded Medicare Advantage premiums, functioning as a hybrid insurer-provider. Medicare Advantage itself has more than doubled in enrollment over the past decade, with hundreds of billions in annual federal spending making it a high-stakes battleground for both legacy insurers and venture-backed challengers.

Devoted's investor roster is a who's-who of top-tier venture capital: Andreessen Horowitz, General Catalyst, Venrock, Iconiq, and Emerson Collective are all on the cap table. The founders bring serious institutional pedigree — Ed Park was COO of athenahealth, while Todd Park served as Chief Technology Officer of the United States under President Obama. If the $25 billion round closes, Devoted would rank among the most valuable private healthcare companies in the U.S.