And similar to Facebook and Lightmatter, OpenEvidence was founded by a graduate of a local university — Daniel Nadler got a Ph.D. in political economy at Harvard and cofounded the financial AI firm Kensho Technologies in Cambridge. The writing may have been on the wall for OpenEvidence’s move when Nadler bought a $38 million beachside condo in Miami this summer. Reached by the Globe, Nadler confirmed his company’s move to Miami but wouldn’t comment on why.

The departure raises a fundamental question for the local tech scene amid the stratospheric rise of AI, which is capturing about two out of every three dollars of venture capital raised this year nationwide. Already, Boston lacked any of the giants developing fundamental AI models, such as California-based OpenAI, Google, and Anthropic. (We do have fast-growing LiquidAI, out of MIT.)

But the region was supposed to be able to rely on its strong health care, finance, and academic sectors to generate startups building AI applications in those fields and others. If the most successful applied AI companies take off just as they hit it big, however, those regional strengths may prove ephemeral.

For guidance, I turned to Michael Greeley, cofounder of the local health care-focused VC firm Flare Capital Partners. Greeley has been investing in health care and tech startups for decades, helping found Flybridge Capital Partners before Flare.

Greeley told me to calm down.

The market for health care AI won’t end up like biotech, concentrated in just a few cities, Greeley said. Too many places have great hospitals. And health insurers are spread all over the country, providing breeding grounds for AI startups almost anywhere. “That parity is just the reality of the health care tech market,” he said.

Still, Boston will continue to generate an outsized portion of startups, he added. Despite the loss of OpenEvidence with all its promise, “I’m not concerned,” he said. “You’ll continue to see real strength here.”

Among local startups, Greeley pointed to Flare-backed Cohere Health, which uses AI for insurance approvals and raised $90 million in May. There are others on the rise as well: AI drug developer InSilico Medicine raised $110 million in March, and PathAI, developing AI for diagnoses, raised $95 million in January according to data tracker PitchBook.

Greeley expects plenty more local deals ahead. “It’s going to be a hyper-competitive battle,” he said.

🖥️ Kopin’s new video display could save lives — and the company. Read more from tech columnist Hiawatha Bray.

🔑 Well-funded AI science startup is putting down roots in Alewife. Read more from real estate reporter Catherine Carlock.

✂️ Energy Department cancels $110 million in funding for Massachusetts EV battery company. Read more from climate reporter Kate Selig.

🎁 As its post-COVID rebound continues, Wentworth gets $25 million donation to fuel more growth. Read more from business reporter Diti Kohli.

📺 ‘60 Minutes’ looks at alleged Chinese hacking of American infrastructure systems, including in this Mass. town. Read more from breaking news reporter Travis Andersen.

🏛️ Federal small-business innovation program remains in the lurch amid showdown between senators Markey and Ernst. Read more from business reporter Jon Chesto.

✈️ Electric aircraft maker Beta Technologies in South Burlington, Vt., plans to raise up to $825 million in its upcoming initial public offering. That would give the company a value of more than $7 billion on a fully diluted basis.

💸 Boston investment firm HighVista Strategies raised $270 million for its 14th venture capital fund.

🤑 Boston venture capital firm Asymmetric Capital Partners raised $137 million for its second investment fund.

♻️ Clean tech company Gradiant in Boston secured a $50 million loan facility from HSBC.

🩺 Obesity treatment startup Knownwell in Boston raised $25 million in a deal led by CVS Health Ventures and including Flare Capital Partners, MassMutual Catalyst Fund, and Intermountain Ventures.

💰 Anti-drone tech startup MatrixSpace in Burlington raised $20 million in a deal led by The Raptor Group and OTB Ventures.

⚡ Semiconductor startup and MIT spinout Vertical Semiconductor in Cambridge raised $11 million in a deal led by Playground Global.

🩹 Boston-based OutcomesAI, developing an AI system to assist nurses, raised $10 million in a deal led by Santé Ventures.

🩻 Medical tech startup RADiCAIT in Boston raised $1.7 million in a deal led by Frontline Ventures.

🔐 Cybersecurity company Cybereason, formerly headquartered in Boston, is being acquired by Texas-based security firm LevelBlue. Terms of the deal were not disclosed.

📸 Infrared camera maker American Infrared Solutions in Hudson, N.H. was acquired by California defense tech company Anduril Industries. Terms of the deal were not disclosed.

🏥 Health care investing firm HLM Investment Partners in Boston added Ashley Tyrner-Dolce as operating partner. Tyrner-Dolce previously was CEO of FarmboxRx.

🧪 Life sciences AI firm ConcertAI in Cambridge hired Dr. Shaalan Beg as chief medical officer. Beg previously was a senior advisor for clinical research at the National Cancer Institute.

industry watch innovation beat

⚠️ A glitch in a minor software update put millions of web sites and services that rely on Amazon Web Services offline on Monday, including Zoom, Netflix, and the Wall Street Journal.

📱 OpenAI plans to relax some of the safety controls on ChatGPT and allow “verified adults” to have erotic conversations with the AI app.

AI drones are America’s newest cops (Axios)

AI is changing how we quantify pain (MIT Technology Review)

The future of being trans on the internet (The Verge)

👋 Thanks for reading. We’ll be will be back next Tuesday.

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Aaron Pressman can be reached at aaron.pressman@globe.com. Follow him @ampressman.