Subtle Medical Secures $33 Million in Growth Capital Led by Morgan Stanley Expansion Capital and Appoints Industry Veteran Ohad Arazi as CEO

New capital and leadership accelerate Subtle Medical's mission to set a new standard for speed, quality, and patient experience in medical imaging

MENLO PARK, Calif., June 2, 2026 /PRNewswire/ -- Subtle Medical, a leading provider of AI-powered medical imaging software, today announced it has secured $33 million in growth capital, anchored by a Series C financing led by funds managed by Morgan Stanley Expansion Capital, and appointed medical imaging executive, Ohad Arazi, as Chief Executive Officer.

The financing included participation from Korea-based Shinhan Venture Investment and existing investors, Fusion Fund, EnvisionX, BRV, and Samsung Ventures, bringing the company's total capital raised to $86 million. Subtle Medical will use the new capital to accelerate product development, expand commercial adoption globally, and scale its vendor-neutral AI imaging platform across MRI, PET, and CT workflows.

Medical imaging remains a bottleneck across health systems: exams can be lengthy, uncomfortable, and difficult to tolerate, particularly for pediatric, elderly, and critically ill patients. Longer scan times can reduce image quality, delay diagnosis, and limit scanner capacity. Subtle Medical addresses these challenges with AI software that improves image quality and accelerates scans on existing imaging systems, helping providers increase throughput without purchasing new hardware.

Founded by Enhao Gong, PhD, and Greg Zaharchuk, MD, PhD, Professor of Neuroradiology at Stanford University, Subtle Medical helped pioneer the category of AI-powered image enhancement in radiology. The company's solutions support up to an 80% reduction in scan time and are deployed on more than 1,300 scanners across hospitals and imaging centers globally.

As part of its next phase of growth, the company has appointed industry veteran, Ohad Arazi, as CEO to accelerate global enterprise expansion. Arazi brings decades of experience in medical imaging AI, with CEO and leadership roles at Change Healthcare, Zebra Medical Vision, and most recently, Clarius Mobile Health. Enhao Gong, PhD, co-founder and former CEO of Subtle Medical, has transitioned to Chief Science Officer, where he will lead the company's scientific roadmap and continue supporting operations and strategic partnerships in China.

"What drew me to Subtle is that this isn't a point solution – it's becoming the AI layer where health systems run their imaging," said Ohad Arazi, Chief Executive Officer of Subtle Medical. "That's a fundamentally different kind of company, and a bigger opportunity. I've spent my career at the intersection of imaging and enterprise software, and I haven't seen many platforms with this combination of clinical validation and scalability. I'm here to make sure the world knows about it."

"Subtle Medical solves a real operational problem for health systems: imaging backlogs that delay care and constrain capacity," said Kevin Han, Executive Director at Morgan Stanley Expansion Capital. "We are excited to support Subtle Medical's next phase of growth to help enhance the patient experience in medical imaging."

Subtle's flagship products, SubtleHD™(MR) and SubtlePET™, are deployed across major imaging networks, academic medical centers, and leading health systems worldwide. Customers including Mount Sinai, RadNet, and Radiology Partners have reported measurable gains in throughput, efficiency, and patient experience, establishing Subtle as an essential AI infrastructure layer for modern radiology.

At the center of this strategy is Subtle's AI Imaging Hub, a unified platform that gives health systems a single point of control for imaging performance across scanners, regardless of manufacturer. Rather than managing AI tools scanner by scanner or modality by modality, providers can enhance image quality, standardize outputs, and streamline workflows across their entire infrastructure in real time. Unlike OEM-native AI, which is tied to specific equipment, or fragmented point solutions that address one modality at a time, the Hub operates across MRI, PET, and CT environments simultaneously, making it easier for health systems to scale AI adoption without adding complexity.

Subtle is also advancing AI-enabled contrast-enhanced imaging through the development of SubtleGAD™, a technology designed to enable significantly lower-dose gadolinium-enhanced MRI. Research has demonstrated the potential for up to a 90% reduction in gadolinium contrast dose while preserving diagnostic image quality, supporting the company's vision for safer, more patient-centered imaging.

"Subtle Medical was founded to make advanced imaging faster, safer, and more accessible," said Enhao Gong, PhD, co-founder and Chief Science Officer. "As we enter this next phase, I'm excited to welcome Ohad and continue advancing the science behind our platform while expanding its impact across global imaging workflows."

About Subtle Medical, Inc.

Subtle Medical is a leading provider of AI-powered imaging solutions, optimizing scan efficiency and image quality across radiology. Recognized by TIME as a World's Top Healthcare Company (2025), an Nvidia Inception Award winner, and multiple times as a CB Insights GenAI 50, Digital Health 150, and Top AI 100 company, Subtle Medical is committed to transforming medical imaging through responsible and intelligent software. The company's solutions are deployed on over 1,300 scanners worldwide, helping imaging centers and hospitals deliver faster scans, improve image quality, and enhance patient care without the need for new hardware. Learn more at www.subtlemedical.com.

About Morgan Stanley Expansion Capital

Morgan Stanley Expansion Capital is the growth-focused private investment platform within Morgan Stanley Investment Management. Morgan Stanley Expansion Capital targets late-stage growth equity and credit investments within healthcare, technology, consumer and other high-growth sectors. For nearly four decades, Morgan Stanley Expansion Capital has successfully pursued growth investment opportunities and has completed investments in over 220 companies, leveraging the global brand and network of Morgan Stanley.

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SOURCE Subtle Medical, Inc.