OpenEvidence medical AI startup nears $20B valuation with $300M revenue

Medical-focused AI startup OpenEvidence is reportedly considering raising $200 million at a $20 billion valuation, though the company is unlikely to proceed partly due to dilution concerns for founders and shareholders. According to The Information, OpenEvidence has also held acquisition talks with a large tech company in recent months. The company is now generating around $300 million in annualized revenue—double what it was bringing in roughly seven months ago when it was in talks to raise at a $12 billion valuation. This rapid growth could ease investor fears that bigger AI labs, like OpenAI, will absorb application startups. OpenEvidence is running at breakeven on a cash flow basis as it invests in training its models for tasks like generating medical notes and searching medical journals.

OpenEvidence’s AI-powered medical search engine is used by 860,000 licensed and verified U.S. clinicians. Its newest offering, Voice Mode, provides hands-free, evidence-based answers without touching a screen—critical for emergency department doctors who often can't reach a workstation. "When I’m in the ED, I’m never at a workstation when I actually need an answer," said Dr. Ania Bilski, vice president of clinical AI at OpenEvidence. Meanwhile, competitor OpenAI launched ChatGPT for Clinicians in April. PYMNTS Intelligence research notes healthcare is deploying AI in targeted, high-strain areas rather than sweeping automation, and OpenEvidence's growth validates this vertical-specific approach.