OpenEvidence Valued at $12 Billion After New Funding Round
OpenEvidence, a startup known as “ChatGPT for doctors,” raised $250 million in a new funding round. The investment, led by Thrive Capital and DST, pushes the company’s valuation to $12 billion.
The Miami-based company first raised outside capital in February, securing $75 million from Sequoia at a $1 billion valuation. By October, its valuation had jumped to $6 billion. In less than a year, OpenEvidence has raised $700 million from investors including Google Ventures, Nvidia, Kleiner Perkins, David Sacks’ Craft Ventures, and Mayo Clinic.
AI-Powered Support for Physicians
OpenEvidence was founded in 2022 by Daniel Nadler, who previously built Kensho Technologies, and Harvard AI PhD Zachary Ziegler. The platform provides doctors with an AI chatbot trained on medical journals and verified clinical data.
Nadler emphasized, “It helps physicians make high-stakes decisions at the point of care. It’s not trained on the open internet, which can have low-quality medical information.”
He claims over 40% of U.S. physicians now use OpenEvidence, highlighting the platform’s rapid adoption. Health care represents nearly 20% of U.S. GDP, creating a $5 trillion market opportunity.
Competition from Big AI Players
OpenAI and Anthropic have also launched healthcare-focused chatbots. OpenAI’s ChatGPT Health and Anthropic’s Claude Healthcare are HIPAA-compliant AI assistants.
Nadler believes OpenEvidence maintains an advantage through its physician-focused approach, high-quality data, and first-mover status. “We’ve gathered hundreds of millions of real-world clinical consultations from verified doctors. That feedback loop is hard to replicate,” he said.
Ad-Based Model Fuels Growth
OpenEvidence reports over $100 million in annualized revenue, mostly from organic growth. Around 95% of new users discover the platform through other physicians.
Unlike many AI startups, OpenEvidence relies on advertising for revenue. This model helps small practices adopt the platform quickly, even without IT departments or large budgets. Nadler said it allows a broader reach compared to subscription-based services.
Balancing Growth and Profitability
Nadler stressed that the company is focused on sustainable growth. “We’re not burning billions over the next year. We want growth to compound over time.”
With tech giants aggressively pursuing AI acquisitions, Nadler has chosen to keep OpenEvidence independent. He added that IPOs for major foundation-model companies like OpenAI or SpaceX usually come first, followed by application-layer companies like his own.
