OpenEvidence’s Valuation Hits $12 Billion Following a $250 Million Fundraise
In Focus
- The AI startup offers a chatbot for doctors
- OpenEvidence says over 40% of physicians in the U.S. use its AI platform
- The company uses ads to drive revenue and fast-track adoption
OpenEvidence closed a $250 million financing round led by DST and Thrive Capital, CNBC reported. News of OpenEvidence’s funding comes as the startup’s fundraise hit $700 million in under a year. The Massachusetts-based AI startup, which is widely known as “ChatGPT for doctors”, has been backed by top investors, including NVIDIA, Google’s Venture Arm, Mayo Clinic, Kleiner Perkins and Craft Ventures.
An AI-Powered Chatbot for Doctors
Founded by Daniel Nadler in 2022, OpenEvidence offers an AI-powered chatbot for doctors. The company uses data and content from leading scientific journals to train its AI models.
″‘ChatGPT for doctors’ is a useful shorthand, but what we really do is help physicians make high-stakes clinical decisions at the point of care. It’s not trained on the open internet or social media, which can introduce low-quality medical information,” Nadler noted as per CNBC.
The latest funding pushes the ChatGPT for doctors’ valuation to $12 billion. The AI startup had raised $75 million from Sequoia in February 2025 at a $1 billion valuation. OpenEvidence’s valuation rose to $6 billion in October 2025 following a $200 million funding round.
OpenEvidence closed its funding round as AI companies continue to raise additional funding from investors. Recently, Elon Musk’s xAI raised $2 billion in a Series E funding round. The company was targeting a $15 billion raise at a $230 billion valuation.
The AI Opportunity in the Health Sector
According to Nadler, over 40% of physicians in the U.S. use the AI platform. As an AI health startup, OpenEvidence represents a huge opportunity in the healthcare sector. Currently, the sector accounts for about 20% of America’s gross domestic product and its annual spending stands at $5 trillion.
The AI health startup competes with companies such as OpenAI and Anthropic, which recently launched ChatGPT Health and Claude Healthcare respectively. But as competition intensifies, Nadler says OpenEvidence enjoys the advantage of being the first to target physicians and make quality health data accessible.
“We’ve already gathered hundreds of millions of real-world clinical consultations from verified physicians, and that feedback loop is incredibly hard to replicate. Even if someone copied the playbook today, they’d still be far behind because it’s not just the partnerships, it’s the real-world usage data,” Nadler added.
Leveraging Ad-Based Revenue
AI firms have started to embrace adverts as a way of expanding their revenue base. Last month, OpenAI started testing ads on ChatGPT after considering the idea for months.
Rather than paid subscriptions, OpenEvidence relies on ads to drive revenue and fast-track adoption. The company allows businesses to promote their offerings via banner ads, images, badges, videos, and other forms of content on the OpenEvidence app at a fee.
According to Nadler, 95% of new users discover the platform through word of mouth. Last year, the AI startup reported over $100 million in annual revenue, largely driven by organic growth.
