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AI startup OpenEvidence is raising a fresh round of capital from Sequoia to scale its chatbot for doctors. 

The new $75 million cash injection, which has not been previously reported, values OpenEvidence at $1 billion, the two companies told CNBC. 

OpenEvidence, based in Cambridge, Massachusetts, was founded by Daniel Nadler. He previously built Kensho Technologies, a Wall Street-focused artificial intelligence firm that sold to Standard & Poor’s for $700 million in 2018. 

Nadler’s newest AI venture is a chatbot for physicians that helps them make better decisions at the point of care. The company claims it’s already being used by a quarter of doctors in the U.S. 

Following his sale of Kensho, Nadler self-funded OpenEvidence in 2021 before raising a friends and family round in 2023. The funding from Sequoia represents the first round led by an institutional investor and brings the company’s total amount raised to more than $100 million.

The company will also use the funding to forge strategic content partnerships, OpenEvidence said. In addition to the funding, OpenEvidence announced that The New England Journal of Medicine has become a content partner, meaning clinicians using OpenEvidence can benefit from content sourced from NEJM Group journals.

The founder describes OpenEvidence as an AI copilot. While the experience may feel similar to ChatGPT, OpenEvidence is a “very different organism” due to the data it was trained on, Nadler said. 

“Trust matters in medicine, and the fact that it’s trained on The New England Journal of Medicine, the fact that it’s built from the ground up for doctors — the result is a black-and-white difference in terms of accuracy,” Nadler told CNBC.

The company has licensing agreements with peer-reviewed medical journals, and OpenEvidence’s model was not connected to the public internet while trained, Nadler said. Using tailored data helped OpenEvidence avoid the pitfalls of “hallucination,” which is a phenomenon where AI will generate inaccurate, sometimes nonsensical answers to a query.

Meet OpenEvidence, the 'ChatGPT' for verified doctors

OpenEvidence offers its chatbot for free and makes money off of advertising. The product has grown organically thanks to word of mouth between doctors, Nadler said.

“Doctors work very close quarters with one another, especially on the floor in hospitals,” he said. “When one doctor pulls out their iPhone and looks at something, other doctors can see that. Their natural question is, ‘What’s that?'” 

That level of organic growth was an alluring factor for Sequoia partner Pat Grady, who led the firm’s investment. Sequoia is best known for early investments in Nvidia, Apple, YouTube, Stripe, SpaceX and Airbnb.

“This is a consumer internet company masquerading as a health-care business,” Grady told CNBC, saying OpenEvidence is easy for doctors to adopt. “When they have a couple of good experiences with it, it sticks. There aren’t a lot of products in health care that get adopted the way that a consumer internet company might.”

OpenEvidence is the latest in a flood of Silicon Valley artificial intelligence deals. 

The booming sector accounted for 1 in 4 venture dollars raised by startups last year, according to CB Insights. Health care has stood out as a high-potential area for the application of AI. Investors and founders have seen the technology’s ability to sift through large amounts of data, and its potential to transform everything from drug discovery to medical imaging.

“There are a lot of great ideas in health care, but it is such a complex system,” Grady said. “It’s really hard to cut through layer upon layer upon layer.” 

While AI has the potential for health-care breakthroughs, there are also worries about the risks. Industry leaders have voiced concern about a “doomsday” scenario where the technology leads to a catastrophic outcome for humanity, and on the smaller scale, others worry about job displacement.

OpenEvidence’s Nadler said he thinks the health-care use cases are the antidote, and represent the upside potential of AI. He highlighted doctor burnout and projections of an almost 100,000 physician shortfall by the end of the decade. 

“There’s this big question that’s on everybody’s mind right now, is AI actually going to be good for humanity or not?” Nadler said. “I think it is, inarguably, going to be good.”

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How quantum could supercharge Google’s AI ambitions

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How quantum could supercharge Google’s AI ambitions

Inside a secretive set of buildings in Santa Barbara, California, scientists at Alphabet are working on one of the company’s most ambitious bets yet. They’re attempting to develop the world’s most advanced quantum computers.

“In the future, quantum and AI, they could really complement each other back and forth,” said Julian Kelly, director of hardware at Google Quantum AI.

Google has been viewed by many as late to the generative AI boom, because OpenAI broke into the mainstream first with ChatGPT in late 2022.

Late last year, Google made clear that it wouldn’t be caught on the backfoot again. The company unveiled a breakthrough quantum computing chip called Willow, which it says can solve a benchmark problem unimaginably faster than what’s possible with a classical computer, and demonstrated that adding more quantum bits to the chip reduced errors exponentially. 

“That’s a milestone for the field,” said John Preskill, director of the Caltech Institute for Quantum Information and Matter. “We’ve been wanting to see that for quite a while.”

Willow may now give Google a chance to take the lead in the next technological era. It also could be a way to turn research into a commercial opportunity, especially as AI hits a data wall. Leading AI models are running out of high-quality data to train on after already scraping much of the data on the internet.

“One of the potential applications that you can think of for a quantum computer is generating new and novel data,” said Kelly. 

He uses the example of AlphaFold, an AI model developed by Google DeepMind that helps scientists study protein structures. Its creators won the 2024 Nobel Prize in Chemistry. 

“[AlphaFold] trains on data that’s informed by quantum mechanics, but that’s actually not that common,” said Kelly. “So a thing that a quantum computer could do is generate data that AI could then be trained on in order to give it a little more information about how quantum mechanics works.” 

Kelly has said that he believes Google is only about five years away from a breakout, practical application that can only be solved on a quantum computer. But for Google to win the next big platform shift, it would have to turn a breakthrough into a business. 

Watch the video to learn more.

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Nintendo Switch 2 retail preorder to begin April 24 following tariff delays

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Nintendo Switch 2 retail preorder to begin April 24 following tariff delays

An attendee wearing a Super Mario costume uses a Nintendo Switch 2 game console while playing a video game during the Nintendo Switch 2 Experience at the ExCeL London international exhibition and convention centre in London, Britain, April 11, 2025. 

Isabel Infantes | Reuters

Nintendo on Friday announced that retail preorder for its Nintendo Switch 2 gaming system will begin on April 24 starting at $449.99.

Preorders for the hotly anticipated console were initially slated for April 9, but Nintendo delayed the date to assess the impact of the far-reaching, aggressive “reciprocal” tariffs that President Donald Trump announced earlier this month.

Most electronics companies, including Nintendo, manufacture their products in Asia. Nintendo’s Switch 1 consoles were made in China and Vietnam, Reuters reported in 2019. Trump has imposed a 145% tariff rate on China and a 10% rate on Vietnam. The latter is down from 46%, after he instituted a 90-day pause to allow for negotiations.

Nintendo said Friday that the Switch 2 will cost $449.99 in the U.S., which is the same price the company first announced on April 2.

“We apologize for the retail pre-order delay, and hope this reduces some of the uncertainty our consumers may be experiencing,” Nintendo said in a statement. “We thank our customers for their patience, and we share their excitement to experience Nintendo Switch 2 starting June 5, 2025.”

The Nintendo Switch 2 and “Mario Kart World bundle will cost $499.99, the digital version “Mario Kart World” will cost $79.99 and the digital version of “Donkey Kong Bananza” will cost $69.99, Nintendo said. All of those prices remain unchanged from the company’s initial announcement.

However, accessories for the Nintendo Switch 2 will “experience price adjustments,” the company said, and other future changes in costs are possible for “any Nintendo product.”

It will cost gamers $10 more to by the dock set, $1 more to buy the controller strap and $5 more to buy most other accessories, for instance.

WATCH: Nintendo has ‘a lot of work to do’ to convince casual users to upgrade to Switch 2: Kantan Games

Nintendo has 'a lot of work to do' to convince casual users to upgrade to Switch 2: Kantan Games

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Etsy touts ‘shopping domestically’ as Trump tariffs threaten price increases for imports

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Etsy touts 'shopping domestically' as Trump tariffs threaten price increases for imports

An employee walks past a quilt displaying Etsy Inc. signage at the company’s headquarters in the Brooklyn.

Victor J. Blue/Bloomberg via Getty Images

Etsy is trying to make it easier for shoppers to purchase products from local merchants and avoid the extra cost of imports as President Donald Trump’s sweeping tariffs raise concerns about soaring prices.

In a post to Etsy’s website on Thursday, CEO Josh Silverman said the company is “surfacing new ways for buyers to discover businesses in their countries” via shopping pages and by featuring local sellers on its website and app.

“While we continue to nurture and enable cross-border trade on Etsy, we understand that people are increasingly interested in shopping domestically,” Silverman said.

Etsy operates an online marketplace that connects buyers and sellers with mostly artisanal and handcrafted goods. The site, which had 5.6 million active sellers as of the end of December, competes with e-commerce juggernaut Amazon, as well as newer entrants that have ties to China like Temu, Shein and TikTok Shop.

By highlighting local sellers, Etsy could relieve some shoppers from having to pay higher prices induced by President Trump’s widespread tariffs on trade partners. Trump has imposed tariffs on most foreign countries, with China facing a rate of 145%, and other nations facing 10% rates after he instituted a 90-day pause to allow for negotiations. Trump also signed an executive order that will end the de minimis provision, a loophole for low-value shipments often used by online businesses, on May 2.

Temu and Shein have already announced they plan to raise prices late next week in response to the tariffs. Sellers on Amazon’s third-party marketplace, many of whom source their products from China, have said they’re considering raising prices.

Silverman said Etsy has provided guidance for its sellers to help them “run their businesses with as little disruption as possible” in the wake of tariffs and changes to the de minimis exemption.

Before Trump’s “Liberation Day” tariffs took effect, Silverman said on the company’s fourth-quarter earnings call in late February that he expects Etsy to benefit from the tariffs and de minimis restrictions because it “has much less dependence on products coming in from China.”

“We’re doing whatever work we can do to anticipate and prepare for come what may,” Silverman said at the time. “In general, though, I think Etsy will be more resilient than many of our competitors in these situations.”

Still, American shoppers may face higher prices on Etsy as U.S. businesses that source their products or components from China pass some of those costs on to consumers.

Etsy shares are down 17% this year, slightly more than the Nasdaq.

WATCH: Amazon CEO Andy Jassy says sellers will pass cost of tariffs on to consumers

Amazon CEO Andy Jassy: Sellers will pass increased tariff costs on to consumers

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