Medical AI Startup OpenEvidence Reaches $12 Billion on Rapid Doctor Adoption

OpenEvidence, often called “ChatGPT for doctors,” has reached a $12 billion valuation after a new funding round. The company raised $250 million in a deal led by Thrive Capital and DST. This marks a sharp jump from a $1 billion valuation just one year ago.

The startup says its AI tool is now used by about 40% of doctors in the U.S. It also reported more than $100 million in annual revenue last year. CEO Daniel Nadler said the product helps doctors make clinical choices at the point of care. “It’s not trained on the open internet or social media,” Nadler said, pointing to a focus on trusted medical data.

OpenEvidence was founded in 2022 by Nadler, who previously sold Kensho Technologies to Standard and Poor’s for about $700 million. Since early 2024, the company has raised about $700 million from investors that include Alphabet (GOOGL) and Nvidia (NVDA).

Business Model and Competition

Unlike many AI firms, OpenEvidence relies mostly on ads for revenue. Drug makers and health firms can pay for banners and other tools inside the app. Nadler said this helps reach small clinics that lack large software budgets. As a result, he noted that 95% of new users hear about the product from other doctors.

At the same time, large AI players are moving into health care. OpenAI recently launched ChatGPT Health, while Anthropic offers Claude Healthcare. Even so, Nadler argues that OpenEvidence has a lead due to real world use by doctors. “We’ve already gathered hundreds of millions of real world clinical consultations,” he said.

Looking ahead, Nadler said the company plans to stay independent and focus on steady growth. He also suggested that major AI model firms will go public before app-focused companies like his. For now, OpenEvidence is betting that health care, which makes up nearly 20% of U.S. GDP, can support several long-term winners.