Privacy protection is an ethical issue with broad concern in Artificial Intelligence (AI). Federated learning is a new machine learning paradigm to learn a shared model across users or organisations without direct access to the data. It has great potential to be the next-general AI model training framework that offers privacy protection and therefore has broad implications for the future of digital health and healthcare informatics. Implementing an open innovation framework in the healthcare industry, namely open health, is to enhance innovation and creative capability of health-related organisations by building a next-generation collaborative framework with partner organisations and the research community. In particular, this game-changing collaborative framework offers knowledge sharing from diverse data with a privacy-preserving. This chapter will discuss how federated learning can enable the development of an open health ecosystem with the support of AI. Existing challenges and solutions for federated learning will be discussed.