Cohere Inc, a Toronto-based artificial intelligence startup, has emerged as one of the most valuable startups globally. In a recent round of funding, the company was valued at $5.5 billion. Unlike other Silicon Valley competitors, Cohere has not focused on developing consumer applications, such as those that generate creative content, such as poems or images.
Founded in 2019, Cohere is focused on developing large-scale language models that parse and generate text from vast volumes of internet data. Its customers include Notion Labs Inc. and Oracle Inc. which use Cohere's technology to improve text writing, user communication and add generative AI capabilities to their products.
The company raised $500 million in a Series D funding round led by PSP Investments, along with other investors such as Cisco Systems Inc. and Fujitsu. This funding has doubled its valuation from last year, bringing the total raised to $970 million.
Unlike its Silicon Valley competitors, Cohere is focused on practical solutions for businesses, rather than pursuing general artificial intelligence. Nick Frosst, one of the co-founders, said they seek to create efficient models to solve real problems in the business environment.
Co-founder Aidan Gomez, a leading figure in the artificial intelligence community, has driven the company's rapid expansion. Recently, Cohere launched its most powerful model to date, Command R+, designed to compete with OpenAI but at a lower cost.
As of March, the company was generating $35 million in annualized revenue, up significantly from $13 million at the end of 2023. Cohere also plans to double its workforce of approximately 250 employees this year.
Cohere's models, which can operate in ten languages, have found applications in a wide range of industries. For example, Toronto-Dominion Bank will use its AI to answer questions based on financial documents. Cohere's multilingual capability has been a key factor in attracting investment from Canadian government agency EDC, which expects the company to expand its international operations while maintaining its base in Toronto.
