A Congressional aide said Kennedy was taken ill at the lunch that followed Mr Obama's inauguration in Washington DC.
He was seen to collapse and appeared to suffer from convulsions before being evacuated to Washington Medical Center by medical staff.
A hospital spokeswoman later said Kennedy was awake and answering questions as he was being assessed.
His son Patrick Kennedy was quoted as saying: "He's awake, he is talking, he is going to be fine."
Mr Kennedy, brother of the late President John F Kennedy and one of the Senate's most respected Democrats, is battling a life-threatening brain tumour.
Mr Obama said his prayers were with the 76-year-old and his family.
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