Did you know? OpenEvidence, a chatbot designed to help doctors quickly access clinical research, is now valued at $12 billion.
A popular chatbot assisting doctors in their search for clinical evidence, OpenEvidence, announced $250 million in new funding on Wednesday.
AI-Powered Evidence Tool Secures $250 Million
The funding round values OpenEvidence at $12 billion, reflecting the growing investment in artificial intelligence within healthcare.
- OpenEvidence received $250 million in funding, bringing its total funding to $735 million in the last year.
- The company is currently free for clinicians with a national provider identifier number.
- OpenEvidence generates revenue through advertising displayed to clinicians.
- A recent report questioned whether companies like OpenEvidence can justify their high valuations based on current business models.
The latest funding round was led by Thrive Capital and DST Global. This substantial investment brings the total funding for OpenEvidence to $735 million over the past 12 months, catapulting the company’s valuation to $12 billion. Founded in 2022, OpenEvidence offers a free service to any clinician holding a national provider identifier number.
Currently, OpenEvidence’s primary revenue stream is advertising shown to clinicians using the platform. This model has drawn some scrutiny, as highlighted in a report released earlier in January by Silicon Valley Bank. The report raised questions about the ability of health AI companies like OpenEvidence to deliver on their high valuations relying solely on advertising and software-as-a-service models.
The authors of the report suggested that these companies “won’t be a surprise to see them tap the value of the data they’re already collecting” to expand their services, potentially offering more tailored solutions to pharmaceutical companies or other healthcare stakeholders. OpenEvidence is positioned as a key player in the burgeoning wave of health artificial intelligence companies that have emerged with the increased accessibility of large language models.
Quick fact: OpenEvidence is one of the most well-funded companies in the recent surge of health AI startups.
The rapid growth and substantial funding within this sector suggest a significant shift in how healthcare professionals access and utilize information, but also raise questions about long-term sustainability and data utilization.
