TTA’s Even Hotter July #2: why data center financing is like subprime mortgates and SPACs, OpenAI’s model escapes its sandbox and attacks, Precision’s BCI wins tests, Tempus buys Personalis for $1.5B, more!

 

24-27 July 2026

Even though summer storms replete with tornados have cleared out the northeast US heat wave, elsewhere it’s roasting and the summertime news doldrums continue. The most significant news isn’t healthcare specific–it’s that OpenAI’s agentic AI in test jumped out of its sandbox, got into the internet, and attacked an AI model repository. Another BCI, Precision, is notching some clinical test wins in non-invasive thought control. Clover Health has a hopefully small data breach.

But the Big Read this week is another cautionary tale from Ed Zitron, who takes apart AI data center financing by likening it to the 2008 and prior subprime mortgate financing. Your Editor takes it further to the 2020-22 SPAC boom that left nearly all companies and billions in the dust.

Please feel free to comment on the articles and pass along this Alert. Let me know if this is worth it to you! Also check out my personal page on Substack.

This week’s Must Read: the dangerous financing of AI data center buildouts–and how they resemble the 2020 health tech boom

Chutes & Ladders: Data breach clouts Clover, OpenAI agent escapes sandbox to attack Hugging Face, Precision’s surface BCI achieves thought control, Tempus AI $1.5B Personalis buy, Karoo Health’s $16.2M Series A

Last week’s headlines

News roundup: Withings Medical Group service launches, MPs urge cancellation of NHS/Palantir FDP contract, IKS closes TruBridge buy for $557M, ATA comments on prelim CMS PFS for telehealth, Philips’ AI-powered…toothbrush

A gloomy view on Oracle going forward: debt, cash flow, and dependence on OpenAI

Recent Headlines and Must Reads

Chutes & Ladders: Done Global principals sentenced on Adderall fraud, Oracle E-Biz Suite hacked, OpenAI’s 5% offer to US government, Meta considers cloud AI, Pearl’s $110M raise

Midjourney Medical audaciously promises a revolution in whole-body scanning, powered by Butterfly Network chips. Can the reality ever match the hype?

Vinegary Must Reads This Week: Silicon Valley’s ‘Cargo Culture’; the clinical query tool explosion between OpenEvidence and general AI

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Donna Cusano, Editor In Chief
donna.cusano@telecareaware.com

Telehealth & Telecare Aware – covering news on latest developments in telecare, telehealth and eHealth, worldwide.

Chutes & Ladders: Data breach clouts Clover, OpenAI agent escapes sandbox to attack Hugging Face, Precision’s surface BCI achieves thought control, Tempus AI $1.5B Personalis buy, Karoo Health’s $16.2M Series A

In the Chutes department, it’s an insurer breach and an AI model that broke dramatically out of its sandbox.

Clover Health reported that three employee accounts were breached. The breaches were implemented through a ‘classic’ social engineering scheme such as phishing–the kind that this Editor was trained on years ago when she worked in marketing for a unit of a well-known health insurer. This sounds minor except that the three accounts were of “non-managerial employees with access to member visit-scheduling and broker-facing sales functions.” However, these employees also had access to some personally identifiable information (PII) and protected health information (PHI) of members. Apparently, there was outside, non-authorized activity because Clover’s SEC Form 8-K filing reported that it was “contained and terminated” but Clover is still investigating the extent of the breach and must complete required reporting and member notifications. The employees did not have access to claims or corporate financial systems. Clover Health, considered a pioneering ‘insurtech’, has remained relatively small, with 156,000 Medicare Advantage PPO members in Georgia, New Jersey, Pennsylvania, South Carolina, and Texas. Healthcare Dive

Agentic AI Gone Wild–the breakout of its sandbox of an advanced OpenAI agentic AI system into Hugging Face’s open-source AI model repository platform. OpenAI admitted in a blog post published yesterday (21 July) that the attack originated during internal testing of its own AI models. In what it called an “unprecedented cyber incident”, their own investigation revealed that “we now know that this particular incident was driven by a combination of OpenAI models — including GPT‑5.6 Sol and an even more capable pre-release model, all with reduced cyber refusals for evaluation purposes — while being internally tested on a benchmark⁠ of cyber capabilities.” Even though the testing was run in a ‘highly isolated environment’, OpenAI admits that the models found a way to gain internet access and attacked Hugging Face’s servers. Hugging Face detected and stopped the activity while OpenAI claims it found the activity internally. What’s scary is that Anthropic (Claude Mythos) and OpenAI now have had ‘out of the sandbox’ incidents in their frontier AI development worlds. As OpenAI put it, “The incident also makes clear that advanced models can discover and exploit novel attack paths in real-world systems without source-code access. It highlights that advanced cyber capabilities must be developed alongside stronger safeguards and defensive tools.” Hugging Face reportedly had to use GLM 5.2, an open-weight model developed by Chinese firm Z.ai, to investigate it because US AI models had restricting guardrails that blocked investigation. Computing 21 July, 22 July

And there are a few Ladders this quiet week.

Precision Neuroscience has successfully implanted its brain-surface brain-computer interface (BCI) into able-bodied test subjects and achieved successful thought-controlled cursor control. Unlike Neuralink, Precision’s implants rest on the surface of the brain, not in the brain. Neuralink’s subjects are also are mobility-impaired [TTA 10 July]; Precision’s patients have full movement but had neurosurgical procedures for a variety of reasons. By enrolling in the Precision research study, the patients were able to move solely by thought cursors to navigate games like Pong and Mario Cart on tablets and smartphones while in recovery. The 510(k) investigational devices were removed in a five-minute procedure before the patient went home. This is a real advance for a less-invasive BCI. Mobihealthnews, video (YouTube)

Tempus AI has agreed to acquire Personalis for $1.5 billion. Both are public companies listed on Nasdaq. Tempus AI is a precision medicine company using AI to analyze data for personalized care and therapeutics. Personalis is a cancer genomics company that uses DNA minimal residual disease (MRD) testing to detect cancer recurrence. The offer to Personalis shareholders is for $16.25 per share of common stock which was a 6% premium to last Friday’s closing price; it closed today (22 July) at $12.47.  The deal is for Tempus shares with the option for cash. Personalis had Q2 preliminary revenue of $22.4 million. The transaction is expected to close in late 2026 or early 2027. Mobihealthnews, Tempus release

We close with a fairly hefty (for these days) $16.2 million Series A for cardiovascular tech company Karoo Health. The oversubscribed raise for the Albuquerque, New Mexico company was led by 7wire Ventures and Allumia Ventures, with participation from First Trust Capital Partners, LLC, SpringRock Ventures, Hyde Park Angels (HPA), and other marquee investors. Karoo combines on-site and virtual care teams with their proprietary technology in cardiac care for cardiology practices and health systems in a value-based care model that connects, patients, providers, and payers. The technology platform is designed for earlier detection, improved coordination, and data-driven care delivery. Karoo release, FierceHealthcare

Some more Ladders, tall and short: telepsych Grow Therapy’s $150M Series D, UnityAI’s $8.5M Series A; Health Recovery Solutions buys Rimidi

Standalone telementalhealth continues to be generously funded. Grow Therapy’s $150 million Series D brings their total funding to $328 million and their valuation to $3 billion. Their combination of in-person and telehealth visits with clinicians and psychiatrists is targeted to health plans, employers, and health systems. In-network plans include Humana, Cigna, UnitedHealthcare and Aetna. The fresh funding will be for expansion to the employer benefits market, within health systems for integration with primary care, and additional advanced AI tools. Grow claims that in 2025, they facilitated seven million visits, for a total since inception of 10 million therapy and medication management appointments. The round was led by TCV and Growth Equity at Goldman Sachs Alternatives, which had previously led Grow Therapy’s Series B and C respectively. Participating were new investors BCI and Menlo Ventures plus existing investors Sequoia Capital, SignalFire, and Transformation Capital. Grow joins well-funded competition Spring Health, with a valuation of $3.3 billion and Headway, with a $2.3 billion valuation.​ Blog/Release, Mobihealthnews, MedCity News, Reuters

UnityAI passes the Series A bar with $8.5 million. The round was led by Third Prime, with participation from Nashville Capital Network, Whistler Capital Partners, Max Ventures, Company Ventures, and other existing investors for a total funding of $15 million. Nashville-based UnityAI is a startup developing agentic AI to assist healthcare staff in scheduling for outpatient and specialty care practices. The agents assist with scheduling and rescheduling, confirmations, follow-ups, and referrals. It also integrates staffing operations – capacity optimization, shift management, PTO, and coverage–with the agents into what they call a “single continuously operating system”. The new funding will support continued efforts to scale go-to-market execution and extend its AI-powered operational capabilities. UnityAI integrates with major EHRs and is currently operating 300,000 patient interactions per month across hundreds of sites of care. UnityAI release, Mobihealthnews

And in local (to this Editor) news, Health Recovery Solutions buys Rimidi. Not the Italian Adriatic resort, Rimidi is an Atlanta-based software and services provider for chronic disease management and remote patient monitoring for diabetes and cardiometabolic conditions. Physician founded, it targeted to health systems, physician practices, value-based care organizations, and community health centers such as FQHCs and RHCs. No acquisition cost nor staff transition were disclosed. Dr. Lucienne Ide, MD, PhD Rimidi’s CEO and founder, joins HRS as chief medical officer.

Health Recovery Solutions (HRS) provides remote patient monitoring (RPM), chronic care management (CCM), and longitudinal virtual care. Headquartered in Hoboken, NJ across the Hudson from NYC, its last raise was $70 million in Series C funding back in 2021 via Edison Partners and LLR Partners. Several online sources report a revenue run rate between $23 and $50 million. Rimidi was relatively small, with its last funding in 2023 for $5 million, totaling $12.9 million from investors such as Eli Lilly and Village Capital. Notably, it was woman-led. The acquisition is expected to strengthen HRS’ EHR integrations and in managing diabetes and metabolic diseases within HRS’ PatientFirst Pathways care model. Release

Are Hippocratic AI and AI “nurses” the wave of the future–or just another tide of hype? Two articles question.

Gimlet EyeTwo Gimlety views of a hot AI player, Hippocratic AI. 2025’s first $1.6 billion valuation unicorn after its January $141 million Series B venture round is on a hiring streak. Their ‘safety focused generative AI for healthcare’ built on large language models (LLMs) has developed multi-age, ethnicity, and language AI-powered virtual “nurses” to interact with patients on post-discharge follow ups for medical and hospital visits, chronic care management, and medication reminders. The purpose of the agentic AI nurses is to close the gap of healthcare staff shortages.

On their website, the recorded demos of the ‘nurses’ roleplaying with real nurses sounded to this Editor responsive, warm, convincing, and uncannily human–the opposite of AI agents this Editor has dealt with, which are robotic, clearly on narrow scripts, and easily thrown off by off-script or critical questions, resulting in long silences and cutoffs. But none of the ‘patients’ threw curveballs, talked about multiple conditions, or deviated much in the Q and A. In other words, the bots got to shine.

Last month, it released its Polaris 3.0 product which organizes 22 LLMs having 4.2 trillion parameters, using proprietary data, documentation, regulatory documents and other training materials then tested by clinicians. It claims a clinical accuracy rate of 99.38% compared to 98.75% for their previous Polaris 2.0 version and upgrades in audio processing, agent emotional quotient, and improved clinical documentation. At the end of the month, Hippocratic AI announced seven new hires at C and VP levels, coming from major companies like Amwell, Blue Shield of California, non-profits such as Population Services International, and smaller healthcare companies such as Sidekick Health and Notable. Quite a move for a company only formed in February 2023, 22 months ago.  Release, Mobihealthnews

Hippocratic AI is on a roll, but as with any sudden rise and particularly with LLM AI, the technology and claims are being examined closely. Two articles on Substack take a critical view–this Editor strongly suggests getting a cuppa and taking time to read them carefully.

The shorter of the two (and open to all) is Thomas W. Dinsmore’s “No Bots, Please” . He looks at Hippocratic AI’s tech from the perspective of someone highly experienced in machine learning tools and platforms from back when we called them algorithms. He presents a lot of cautions and yellow flags.

  • Testing apparently not done on real patients
  • Their claims of Polaris’ accuracy are not benchmarked externally. “Independent benchmarks are impossible with a proprietary model like Polaris.”
  • LLMs are ubiquitous, costs are coming down, and investing in a company with proprietary LLMs may not be the smartest move.
  • Hippocratic AI has many healthcare ‘partners’ (this Editor counted 15), many glowing endorsements from healthcare leaders, an impressive timeline. The rub? They are likely not paying anything, which is unusual for a Series B anything much less a unicorn. (I can personally confirm this last point.) Everyone will say nice things about you if you are free.
  • He points out two types of value creation in healthcare. The first is doing a routine or even highly skilled process faster and better. The second is creating an entirely new capability.
  • The touted healthcare shortage number is way overstated. The 15 million healthcare worker shortage cited by WHO and Hippocratic is global. The need in developing nations is primarily midwives, which can’t be done virtually. In the US, the number reported by the Bureau of Health Workforce (BHW) is closer to 2 million, with about 1 million nurses and the rest in LPNs, adult psychiatrists, family physicians, internists, and other clinicians.
  • The Hippocratic pitch is that their bots can replace nurses. The irony is that what the bots do best–patient education–isn’t being done by nurses, based on a McKinsey study on nursing workloads. The nurses’ biggest time suck is updating documentation, followed by hunting and gathering (everything from locating patients to finding equipment), and medication administration. None of which can be done by Hippocratic AI. 
  • Bots have very limited use with mentally ill patients — and negative for those in crisis.

Conclusion: The model is shaky. The effort in creating bots is wasted. What would be a lot more useful in healthcare would be a system that prioritizes, flags, and notifies staff of a patient deteriorating who needs a real human being to call.

Want more? The Really Long Read is Sergei Polevikov’s Hypocritical AI: $45/Hour Human Nurses Babysitting $9/Hour “AI Nurses” in AI Health Uncut. This may be only partially viewable by those who are not subscribers (and it’s worth the small amount). It is a very deep and critical dive into Hippocratic AI, if what it is selling is real (red flag–their releases contain a lot of numbers which aren’t verifiable), and VC hype. The main sections of the article:

  1. What exactly Hippocratic AI is selling, including poor workflow and EHR integration 
  2. What’s really under the hood of its “AI agents.”
  3. The reality behind “AI nurses”—and the human nurses tasked with babysitting them.
  4. Whether Hippocratic AI fine-tuned its models using confidential insurance or health data obtained from Health IQ.
  5. The toxic corporate culture, code of silence, and reliance on H-1B/O-1 visa “slavery.”

Plenty of references and comparisons. If you aren’t skeptical after the Dinsmore article, you will be after this. A must read.