Butterfly Network's stock reacted strongly to Midjourney's healthcare hardware announcement Thursday morning, rising 17% after the design and imaging company introduced the Midjourney Scanner and a new division, Midjourney Medical.
Midjourney presented the scanner and its healthcare intent during an event in San Francisco. The company described the Midjourney Scanner as an imaging platform that leverages Butterfly's licensed, semiconductor-based Ultrasound-on-Chip technology to convert ultrasound into a large-scale computational tomography imaging infrastructure.
According to material shared by Midjourney in a posted video, the scanner integrates hundreds of thousands of ultrasonic elements with advanced reconstruction algorithms and hyperscale computing resources. The combined system is intended to enable full-body ultrasonic computational tomography and, as described, to generate high-resolution 3D full-body scans in about one minute.
Midjourney signaled a consumer-oriented commercial strategy by planning a flagship spa in San Francisco that will house the first Midjourney Scanner. The company framed the offering as part of a personal health and wellness retail service that would include full-body scanning.
Reports accompanying the unveiling indicate Midjourney is developing a suite of four hardware products: the scanner plus two handheld devices and two machine systems. The scope of the hardware roadmap underscores Midjourney's stated intention to expand beyond a single device.
Market analysts seized on the move as validation of Butterfly's semiconductor platform beyond handheld ultrasound probes. TD Cowen analyst Joshua Jennings said the Midjourney Scanner highlights the potentially underappreciated value of Butterfly's Ultrasound-on-Chip, noting that the partnership could serve as proof that BFLY's embedded semiconductor technology can be licensed as an infrastructure enabling new imaging platforms.
Jennings' comments, as reported, emphasize potential commercial pathways for Butterfly that include licensing revenue, future chip sales, and revenue sharing tied to third-party imaging systems built on its platform.
Butterfly Network executives Joe DeVivo (CEO), John Doherty (CFO), and David Horsley (SVP Innovation) are scheduled to join a TD Cowen conference call Thursday at noon ET to discuss Midjourney's initiative and its implications for BFLY's business model.
Context note - The information above is drawn from Midjourney's product announcement and reported analyst commentary concerning Butterfly Network's Ultrasound-on-Chip technology and the planned Midjourney commercial rollout.