AI startup OpenEvidence doubles valuation to $12B in latest funding

AI startup OpenEvidence doubles valuation to $12B in latest funding

OpenEvidence, an artificial intelligence startup often called “ChatGPT for doctors,” clinched a funding round that doubled its valuation to a staggering $12 billion, the company told The Post.

The Miami, Fla.-based startup, which trains its chatbots on data from top scientific journals, lately closed a $250 million financing round led by Thrive Capital and DST, according to a press release. CNBC earlier reported the financing round.

OpenEvidence kicked off its fundraising in February with $75 million from Sequoia at a $1 billion valuation. Just a few months later in October, the company’s valuation jumped to $6 billion.

OpenEvidence founder Daniel Nadler is a billionaire poet and techie. Sequoia Capital/YoutTube

The company has raised $700 million in less than a 12 months from Google Ventures, Nvidia, Kleiner Perkins, David Sacks’ Craft Ventures and Mayo Clinic, according to the press release.

It was based in 2022 by Daniel Nadler – a billionaire poet who offered his first company, Kensho Technologies, to Standard & Poor’s for $700 million in 2018 – and Zachary Ziegler, beforehand a PhD pupil at Harvard finding out AI.

“If you only squint from a distance, OpenEvidence is ‘ChatGPT’ for doctors. If you look closely, it’s a very different organism,” Nadler told The Post in a press release.

“It’s built from the ground up specifically for doctors. It’s free for doctors, but it’s a pro tool,” Nadler said. “It’s trained on specialized medical content, such as the New England Journal of Medicine (through strategic partnerships).”

More than 40% of physicians already use the tool, Nadler claimed, and there’s a lot more alternative for progress in the health care sector – which accounts for practically 20% of US gross home product with $5 trillion in yearly spending.

“Health care is the largest segment of the real economy,” Nadler told CNBC. “People realize there could be a lot of winners in the space.”

Industry giants like OpenAI and Anthropic have already launched HIPAA-compliant variations of their chatbots, often called ChatGPT Health and Claude Healthcare.

More than 50% of physicians already use OpenEvidence, Nadler claimed. Emily Norris/peopleimages.com – inventory.adobe.com

Nadler said OpenEvidence’s huge troves of high quality health data put it a step ahead of the competitors.

“We’ve already gathered hundreds of millions of real-world clinical consultations from verified physicians – that feedback loop is incredibly hard to replicate,” he told CNBC. 

“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 said his company is concentrated on constructing relationships with physicians.

“Most health care in America isn’t happening at billion-dollar hospitals in New York or San Francisco,” he said. “It’s happening in small practices that don’t have IT departments or budgets for expensive software.”

OpenEvidence depends on promoting for income – placing it ahead of the curve in contrast to rivals like OpenAI, which last week announced it could start testing adverts on ChatGPT.

Nadler said the company raked in more than $100 million in annualized income last 12 months, largely from natural progress. A whopping 95% of new customers hear about the app from other medical doctors, he said.

Nadler said OpenEvidence’s huge troves of high quality health data put it a step ahead of the competitors. No Priors/YouTube

The exec also said OpenEvidence is attempting to be more disciplined than some corporations that are “openly planning to burn billions or tens of billions over the next several years” – a dig at dominant large-language mannequin makers.

While AI giants have been on an acquisition spree, Nadler desires to maintain OpenEvidence as an unbiased company, he said.

He’s also ready for bigger companies like SpaceX, OpenAI and Anthropic to go public before contemplating an IPO for his personal company.

“There’s an order to nature,” Nadler told CNBC. “Foundation model companies go public first …That’s how the internet played out, and that’s how this cycle will play out, too.”

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