Toronto-based AI startup Cohere Inc has reached a valuation of $5.5 billion, solidifying its position as one of the world’s most valuable AI companies and one of Canada’s largest startups. The latest funding round, led by Canadian pension investment manager PSP Investments, has raised $500 million for Cohere.
The Series D funding round, which also saw participation from Cisco Systems Inc., Japan’s Fujitsu, AMD Ventures, and Canada’s export credit agency EDC, more than doubles the company’s valuation from the previous year. The fresh financing brings Cohere’s total funding to $970 million.
Cohere’s competitor, OpenAI, is currently valued at $86 billion and the company made a revenue of $3.4 billion from its ChatGPT offerings.s.
Founded in 2019, Cohere specialises in developing large language models (LLMs) designed for business applications. Unlike some of its high-profile Silicon Valley counterparts, such as OpenAI and Google, Cohere focuses on practical solutions to enhance business efficiency rather than pursuing artificial general intelligence (AGI).
The company’s models are used by clients like Notion Labs and Oracle to optimise tasks including website copywriting, user communication, and integration of generative AI.
Cohere’s new model, Command R+, launched this spring, is its most advanced offering to date. The company is also scaling rapidly, with annualised revenue growing from $13 million at the end of 2023 to $35 million by March 2024. It plans to double its workforce this year, having started 2024 with approximately 250 employees.
Cohere recently announced a partnership with Fujitsu Limited to develop and offer large language models (LLMs) tailored for enterprises. The collaboration aims to leverage Japanese language capabilities to enhance customer and employee experiences. The partnership will see Fujitsu become the exclusive provider of these services globally through Fujitsu Data Intelligence
The company’s technology supports applications in over ten languages, including English, Spanish, Chinese, Arabic, and Japanese. Notable use cases include a virtual shopping tool for a luxury brand and AI-powered financial document analysis for Toronto-Dominion Bank. Borderless AI leverages Cohere’s models to address complex employment law queries in multiple languages.
Cohere continues to operate from Toronto, despite its growth into international markets such as San Francisco and London. The company remains committed to its Canadian roots, with co-founder Nick Frosst highlighting Toronto’s role as a strategic hub for global expansion.