Cohere, a Toronto-based startup developing artificial intelligence for businesses, is in discussions with investors to raise capital in the ballpark of $500 million to $1 billion, a person with knowledge of the matter told Reuters Friday.
The fundraising initiative comes amid heightened investment activity driven by the success of the AI software application ChatGPT, with AI startups capturing one-third of venture dollars in the United States in the previous year.
In June, Cohere announced a funding round that successfully raised $270 million, valuing the company at $2.2 billion. This achievement highlighted the emergence of AI capabilities, particularly large language models like ChatGPT, capable of generating diverse texts on demand, capturing global attention.
Cohere competes with OpenAI, the creator of ChatGPT, and the startup Anthropic. However, Cohere differentiates itself by concentrating on the practical applications of AI for businesses, aiming to enhance professionals’ efficiency in their roles. The company has highlighted its success in simplifying the search for infectious disease information for a specific business customer with specialized needs.
Executives convening at this week’s annual meeting of the World Economic Forum in Davos expressed their eagerness to explore strategies for monetizing artificial intelligence (AI), as reported by Reuters.
Cohere, founded in 2019, is actively seeking funds to advance its AI development, attract talent, and expand its sales operations, according to an insider cited by Reuters. The startup, known for providing its technology across various cloud platforms, has deliberately refrained from obtaining financing in the form of credits for its cloud usage, the source mentioned on the condition of anonymity.
The Financial Times previously disclosed the sum of capital Cohere was in talks about with investors, but Reuters could not ascertain the valuation. Cohere CEO Aidan Gomez, a co-author of a significant paper outlining a foundational AI architecture, did not respond immediately to a request for comment.
