AI Startup Cohere Secures $450 mn in VC Funding from Nvidia, Salesforce, and New Investors

Toronto-based AI startup Cohere has raised $450 million in a fresh VC funding round from returning investors Nvidia and Salesforce Ventures, as well as new backers including Cisco and Canadian pension fund PSP Investments, Reuters news report said.
AI Startup CohereThis round marks the first phase of Cohere’s fundraising campaign, with ongoing discussions aiming to secure additional funds to reach a $5 billion valuation. This marks a significant leap from its previous valuation of $2.2 billion during its last private raise, supported by investors such as Inovia Capital in June 2022.

Cohere, a generative AI company that focuses on selling models and applications to enterprises with an emphasis on data privacy, reported $35 million in annualized revenue by the end of March, up from $13 million the previous year.

Cohere competes with industry giants like OpenAI, Anthropic, and Mistral, all of which have attracted substantial investments from strategic partners such as Microsoft, Google, and Amazon. Foundation model AI companies are aggressively raising capital to support the costly development of AI models, which require significant computing power and top-tier talent.

Cohere is poised to benefit from the Canadian government’s initiative to invest C$2.4 billion ($1.77 billion) in computing and AI research, aimed at supporting domestic AI companies. Founded in 2019, Cohere specializes in building large language models, software systems trained on vast amounts of data to generate text. Unlike OpenAI’s exclusive partnership with Microsoft, Cohere has avoided exclusive deals with cloud providers despite receiving backing from Oracle.

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