OpenEvidence's AI-powered medical app has exploded in popularity, with over half of US physicians now regular users. The startup's valuation jumped from $3.5 billion last July to $12 billion this January as doctors increasingly turn to its specialized medical AI for diagnosis guidance. This rapid adoption comes as physicians seek tools to navigate complex cases quickly.

The success has intensified competition in healthcare AI, with legacy services adding AI features while OpenAI enters the clinical space. OpenEvidence's free model, funded by pharmaceutical ads shown during response waits, has helped sidestep traditional hospital IT departments. This "shadow AI" approach raises integration challenges as health systems work to formalize adoption.

Despite enthusiasm, medical experts caution that AI remains imperfect, with studies showing mixed results in clinical applications. OpenEvidence's specialized approach—trained on peer-reviewed medical literature—has produced generally accurate responses. The valuation surge reflects market confidence in AI's potential to transform medicine, but the technology still faces significant competency gaps in real-world scenarios.