Ataraxis AI, a New York-based startup, has raised $20.4 million in Series A funding to launch its first commercial test for breast cancer, which leverages artificial intelligence to predict cancer outcomes and reduce the need for aggressive treatments like chemotherapy. The funding round, led by AIX Ventures, will also support the company's expansion into other types of cancer.

The startup's innovative approach focuses on using AI to accurately predict not only if a patient has cancer but also what their cancer outcome looks like in 5 to 10 years. This technology has the potential to spare patients from unnecessary chemotherapy treatments, saving them from the notorious side effects and reducing healthcare costs.

Ataraxis AI's co-founder, Jan Witowski, revealed to TechCrunch that the company plans to launch its commercial test for breast cancer to U.S. oncologists in the coming months. The test is powered by an AI model that extracts information from high-resolution images of cancer cells, trained on hundreds of millions of real images from thousands of patients. A recent study showed that Ataraxis' tech was 30% more accurate than the current standard of care for breast cancer.

The company's long-term ambitions are equally impressive, with plans to impact at least half of new cancer cases by 2030. Ataraxis also views itself as a frontier AI company that builds its own models, with Meta's chief AI scientist Yann LeCun serving as an AI advisor. "I think at Ataraxis we are trying to build what is essentially an AI frontier lab, but for healthcare applications," Witowski said.

The AI boom has led to a surge in fundraises for cancer care startups. Valar Labs, for instance, raised $22 million to help patients figure out their treatment plan in May 2024. Additionally, there are several AI-powered drug discovery firms in the cancer space, such as Manas AI, which raised $24.6 million in January 2025 and was co-founded by Reid Hoffman, the LinkedIn co-founder.

The growth of AI in cancer care is a significant trend, with many startups focusing on detecting cancer at the earliest possible stage. However, Ataraxis AI is taking a unique approach by tackling the critical question of whether aggressive treatments like chemotherapy are necessary for every patient. With its innovative technology and ambitious goals, Ataraxis AI is poised to make a significant impact in the cancer care landscape.

As the company prepares to launch its commercial test, it will be interesting to see how its AI-powered predictive technology is adopted by oncologists and patients alike. With the potential to revolutionize cancer treatment, Ataraxis AI is certainly a startup to watch in the coming years.