Axios Future of Health Care

August 31, 2026
🌅 Good morning, and welcome to the first daily edition of Future of Health Care, our relaunched newsletter with a sharper focus on the long-term impact of new technologies, business trends and disruptive federal policies.
- First up: AI companies could defuse some of the growing backlash over data centers and server farms by using their computing power to churn out miracle cures. But it quickly gets complicated.
Today's newsletter is 1,119 words, a 4-minute read.
1 big thing: AI turns to health care for an image fix
AI has an image problem. And one way to fix it is for top companies to dive headlong into health care.
Why it matters: Saving the world with AI-designed cures is better than being blamed for ruining the environment or driving up Americans' utility bills.
- But even the most advanced AI models can't produce miracle treatments at the moment — and could create serious security risks if they try.
- That could set up a fraught debate over the next two or three years about the allocation of resources and whether the benefits of throwing vast amounts of computing capacity into medical research outweigh the costs.
Driving the news: The Wall Street Journal reported this month that Anthropic was trying to shore up investor confidence ahead of its massive initial public offering with talk of pushing harder into health care and biology.
- CEO Dario Amodei wrote on X that Anthropic is moving quickly in biology and medicine "and we hope to have incredible results in the coming years and some early glimmers in the coming months."
- Anthropic isn't alone: Nvidia and Eli Lilly are building a $1 billion drug discovery lab in San Francisco that will team up life science researchers with AI model builders and engineers.
- Isomorphic Labs, the AI drug discovery spinoff from Google, recently raised $2.1 billion to hire more AI and clinical talent and has ongoing research collaborations with Novartis, Lilly and Johnson & Johnson.
Yes, but: Breakthroughs may still be years away. That's hardly reassuring to an increasingly anxious U.S. public that's gone NIMBY against data centers, with moratoriums, threatened lawsuits and fears of AI models taking more jobs.
- The technology is dramatically speeding up drug development and helping clinicians analyze medical scans and diagnose conditions. But it's also making health care more expensive, with software and scribes that more thoroughly document the care that's delivered.
- There also are concerns that AI-enabled research tools could be used for nefarious purposes, including potentially making a biological weapon.
- Anthropic implemented strict safeguards on its next-generation Claude Fable 5 model after concluding it could provide "significant uplift" to a bad actor.
Between the lines: AI's push into health care comes as frontier labs like Anthropic and OpenAI prepare to go public to help cover the huge cost of training new models and maintaining multi-gigawatt computing infrastructures.
- Moving into the life sciences is a way to both diversify the companies' revenue streams and reshape public sentiment, said Lloyd Price, a partner at Nelson Advisors, a digital health M&A firm.
- "It's a bit of a hearts-and-minds play ... the bad guys are stealing all of the resources but they could help humanity. The truth is very in the middle," Price told Axios.
- Price said real medical advances could transform people's perception of AI from an environmental and security risk into an essential public utility.
Friction point: There still are big hurdles ahead, including rocky relations with the Trump administration, which is trying to take a hands-off regulatory approach while maintaining oversight of safety and privacy concerns.
- What's more, the public isn't wild about big drug companies, believing their profits are a big factor in high drug prices.
- An AI company could face backlash if the public thinks it's putting profits ahead of patients and contributing to the affordability crisis.
The bottom line: AI labs will need to prove they're bringing measurable benefits to society, not just satisfying investors. The question is whether the public will put up with more server farms in their backyards to get there.
- "What I hear a lot is, where is the material contribution or breakthrough that's directly led to a drug discovery? It's a team sport, and AI is just a player on the field," Price said.
2. Why the Future of Health Care is our new focus
The health care system is changing, and we want to give you the long-term view as well as the short-term view of everything that's happening.
Why it matters: We still intend to be your must-read source for health care news. But we also want to make sure you're getting something fresh and distinctive — and always ahead of the curve.
The big picture: When Axios launched in 2017, one of the first newsletters was Vitals — designed to be everything you need to know about the day's health care news.
- The media landscape has changed since then. You probably already know who's filed (or blocked) that bill you care about, or what some health care company is saying about its bold new plans.
- What will help you more is a smarter, sharper look every day at where it's all heading.
- And when there's big breaking news, we'll focus on what's really important and what it says about the future.
Here's what we'll cover in the new, daily Future of Health Care:
- AI and other emerging tech: The latest advances, how AI is helping or hurting patients and providers, what it can and can't do, and the upsides and downsides of other technologies (like telehealth, robotics and automation).
- Medical discoveries and breakthroughs: What's the true, hype-free value to patients, and what are the limits of trends like personalizing care and cures.
- Affordability: Health care gets more expensive every year, and the future will be determined in no small part by how affordable it is for patients.
- Health policy power struggles: What's next in the Trump administration's efforts to reshape the health care landscape, how Democrats might push back in 2028, and how overhauls of major programs like Medicare Advantage, Medicaid and the Affordable Care Act are playing out.
- Movements: How Make America Healthy Again and MAGA activists are fighting to influence Trump administration health policy.
- The U.S.-China rivalry: How U.S. policymakers and the biopharma industry are responding to China's dramatic ramp-up in drug innovation.
- Red states vs. blue states: How the country is moving toward two different health care systems, with major differences in how they treat everything from Medicaid and the ACA to abortion and gender-affirming care.
The bottom line: That's not the whole list. There's plenty to watch during these rapid cycles of change. We hope you'll read us every morning and let us know what you're watching, too.
Thanks for reading Axios Future of Health Care, and to editor David Nather and copy editor Matt Piper. Please ask your friends and colleagues to sign up.
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