Subtle Medical, an AI-powered medical imaging software company, has secured $33 million in Series C financing led by Morgan Stanley Expansion Capital and appointed Ohad Arazi as chief executive officer.

The funding round included participation from Korea-based Shinhan Venture Investment and existing investors Fusion Fund, EnvisionX, BRV, and Samsung Ventures. The financing brings the company's total capital raised to $86 million, according to a press release statement.

Arazi, who previously held CEO and leadership roles at Change Healthcare, Zebra Medical Vision, and Clarius Mobile Health, replaces co-founder Enhao Gong. Gong has transitioned to chief science officer and will continue to lead the company's scientific development and operations in China.

The Menlo Park, California-based company develops AI software that enhances image quality and reduces scan times on existing medical imaging equipment. The technology supports up to an 80% reduction in scan time and operates on more than 1,300 scanners across hospitals and imaging centers globally.

Subtle Medical's products include SubtleHD for MRI and SubtlePET for PET imaging. The company has deployed its technology across imaging networks including Mount Sinai, RadNet, and Radiology Partners.

The company operates its AI Imaging Hub platform, which provides unified control for imaging performance across different scanner manufacturers and modalities including MRI, PET, and CT systems. The platform allows healthcare providers to enhance image quality and standardize outputs across their imaging infrastructure.

Subtle Medical is also developing SubtleGAD technology, designed to enable lower-dose gadolinium-enhanced MRI with potential for up to 90% reduction in contrast agent dose while maintaining diagnostic image quality.

The company was founded by Gong and Greg Zaharchuk, a professor of neuroradiology at Stanford University. Subtle Medical plans to use the new funding to accelerate product development, expand commercial adoption, and scale its imaging platform globally.