A startup widely known as "ChatGPT for doctors" raised a new funding round that values the company at $12 billion.
OpenEvidence, based in Cambridge, Massachusetts, closed a $250 million financing, led by Thrive Capital and DST, the company told CNBC. The startup first raised outside capital in February, when it reeled in $75 million from Sequoia at a $1 billion valuation, before its value jumped to $6 billion in October.
In less than a year, OpenEvidence has raised $700 million from investors including Google's venture arm, Nvidia , Kleiner Perkins, David Sacks' Craft Ventures and Mayo Clinic.
The company was founded in 2022 by Daniel Nadler, who previously built Kensho Technologies, an artificial intelligence company that was acquired by Standard & Poor's for about $700 million in 2018. Nadler's newest venture provides a chatbot for doctors, with its AI models having been trained on data and information from top scientific journals, Nadler said in an interview.
"'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," Nadler said. "It's not trained on the open internet or social media, which can introduce low-quality medical information."
Nadler claimed OpenEvidence is the most widely used AI platform by doctors in the U.S., with more than 40% of physicians utilizing the tool. He pointed to the massive opportunity in health care, which accounts for nearly 20% of U.S. gross domestic product with $5 trillion in annual spending.
"Health care is the largest segment of the real economy," Nadler said. "People realize there could be a lot of winners in the space."