London firm's AI

London firm's AI-powered ultrasound tech gets $1M backing from federal government

Deep Breathe's ATLAS software can instantly diagnose lung ultrasounds using AI

A London-based startup focused on using artificial intelligence to quickly diagnose lung ultrasounds in the field and at the bedside is receiving a funding boost from the federal government.

The Federal Economic Development Agency for Southern Ontario, or FedDev Ontario, announced Tuesday that Deep Breathe Inc. would receive roughly $1 million to help it scale and commercialize its AI-powered diagnostic software.

Paired with an ultrasound system, the software can instantly diagnose pneumothorax, hemorrhages, and other lung injuries, bypassing the need for a traditional chest X-ray.

The company markets the tool, dubbed ATLAS, or AI Tactical Assessment System, for use on the battlefield, in hospitals and in paramedicine — “radiation-free AI lung diagnostics anywhere,” its website says.

“We are witnessing a revolution in so many spheres as a result of artificial intelligence and what it promises,” said Peter Fragiskatos, the Liberal MP for London Centre, after Tuesday’s announcement at Deep Breathe’s King Street headquarters.

“Every day, I meet people who have challenges, healthcare challenges. Our hospitals are having certain challenges as well. If we can find ways to more efficiently and effectively diagnose, that does help, ultimately, doctors (and) nurses.”

Deep Breathe's technology being used to rule out the presence of a collapsed lung. (Alessio Donnini/CBC News)

Fragiskatos and London West MP Arielle Kayabaga were on hand on behalf of Canada’s AI and digital innovation minister, Evan Solomon, who is also the minister responsible for FedDev Ontario.

The funding is part of a larger $500 million government pledge to expand the Regional Artificial Intelligence Initiative to a total of $700 million. The initiative is meant to help AI startups scale up and address common challenges with AI adoption.

“As the prime minister has made crystal clear, if artificial intelligence is to truly succeed, it is going to have to benefit the vast majority of Canadians,” Fragiskatos said.

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Founded in 2020, Deep Breathe began as a small team working out of Western University’s research park. Six years later, the company now has a staff of 15 and operates out of a space at 45 King St.

Dr. Rob Arntfield, the company’s founder and CEO, said the federal funds will allow it to hire on more staff, and help jump through necessary regulatory hurdles.

“The other major thing is it’s symbolic. Startup life and entrepreneurial life is filled with a lot of skepticism and a lot of unknowns,” Arntfield said.

“The kind of confidence that comes with the federal government standing shoulder to shoulder with your innovations that were merely a drawing on a cocktail napkin a few years earlier, it does a lot for the soul.”

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When CBC London last spoke with Arntfield in 2024, Deep Breathe was still based out of the research park, and had a team of nine. At the time, the company had won roughly $100,000 after placing first in the U.S. Army-hosted competition, xTechInternational.

Last month, the company announced it was one of 15 chosen for NATO DIANA’s Mission Track, the defence innovation accelerator launched by the alliance in 2021, opening it up for potential use by NATO allies. Deep Breathe previously received $169,000 from the defence ministry.

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Since 2024, Arntfield says the company has engaged with militaries from around the world interested in the tech, and has even sold some of its systems, even though it is still in the prototype stage.

“We believe our technology may be used out in the field, we can’t confirm, by some of the purchasers,” Arntfield said.

“We’ve had demand from two Ukrainian medical groups for the technology so far, so we’re trying to find the right mechanism to get them that technology.”

Dr. Rob Arntfield, the CEO and founder of London-based Deep Breathe Inc., at the company's downtown office on Oct. 13, 2026. (Matthew Trevithick/CBC)

Arntfield said the company is focused on necessary regulatory approvals, and recently submitted another application to the U.S. FDA. “We’re now getting in striking position for Health Canada,” he said.

Looking into the future, Arntfield said the company would likely always be rooted in ultrasound, but expand its technology to other vital organs and body parts.

“We originally built an AI that could tell the difference between COVID lung and non-COVID pneumonia that physicians couldn’t even see. So we've already built something that could exceed human eye performance.” he said.

“The idea of the, sort of, true superhuman diagnostics is on our roadmap, but I don't know if we know the world's ready for that yet, but we know we're capable of it, and the technology is capable of it.”

Matthew Trevithick is a radio and digital reporter with CBC London. Before joining CBC London in 2023, Matthew worked as a reporter and newscaster with 980 CFPL in London, Ont. Email him at matthew.trevithick@cbc.ca.