OpenEvidence $12 Billion Valuation: How 'ChatGPT for Doctors' Conquered the Medical AI Market

A 12-fold increase in value in just one year. OpenEvidence, the startup widely hailed as 'ChatGPT for doctors,' just raised $250 million in a funding round led by Thrive Capital and DST. This brings the company's valuation to a staggering $12 billion, up from just $1 billion last February.

The Secret Behind OpenEvidence $12 Billion Valuation

CEO Daniel Nadler attribute the startup's meteoric rise to its laser focus on data quality. Unlike consumer-grade chatbots, OpenEvidence's AI is trained exclusively on high-stakes clinical data and top-tier scientific journals. According to Nadler, the platform is now used by more than 40% of physicians in the U.S., helping them make critical decisions at the point of care without the risk of 'hallucinations' from social media or the open internet.

$100 Million Revenue Through Ad-Based Growth

Financially, the company is outperforming many of its peers. OpenEvidence topped $100 million in annualized revenue last year. Interestingly, it relies on an advertising model rather than subscriptions, which Nadler claims allows for faster adoption in small practices that lack large IT budgets. This strategy has fueled a massive 700 million dollar total investment from heavyweights like Google, Nvidia, and Mayo Clinic.

A Stand-alone Path to IPO

Despite competition from OpenAI's ChatGPT Health and Anthropic's Claude Healthcare, Nadler is determined to keep OpenEvidence independent. He believes the application layer of AI will follow the IPO path of foundation model companies like SpaceX and OpenAI in the coming years. 'I want to build something that compounds over many years,' says Nadler, dismissing early acquisition talks.