Toronto-based generative AI startup Cohere has successfully closed its Series D funding round, raising $500 million at a $5.5 billion valuation. This funding round saw Cohere secure an additional $50 million, surpassing its initial $450 million goal.
The funding round was led by PSP Investments, with significant contributions from Nvidia, Salesforce Ventures, Cisco, and Canadian pension fund PSP Investments. New investors, including AMD Ventures and Export Development Canada (EDC), also participated. Additionally, Japanese IT services company Fujitsu invested in Cohere, cementing a strategic partnership to develop a large-language model (LLM) for private cloud use in Japan.
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Expanding Team and Enhancing Technology
With this fresh capital, the canadian firm plans to double its workforce from 250 employees and expand its team globally. The funding will also support the development of advanced AI models like the newly launched Command R+, which is integrated into Microsoft’s Azure AI model catalogue through a new collaboration.
Impressive Growth and Market Position
Cohere, founded in 2019 by Google Brain alumni, focuses on developing LLMs that generate and interpret text in a human-like manner. As of March, the company reported an annualized revenue of $35 million, up from $13 million the previous year. The exclusive focus on business applications sets it apart from competitors like OpenAI and Anthropic.
Supporting Early-Stage Startups
In addition to its funding success, the unicorn has launched a Startup Program aimed at helping Series B and earlier-stage companies leverage AI affordably. One participant, Borderless AI, offers a Cohere-powered AI agent for HR tasks.
With this substantial investment, the company is poised to further its mission of transforming AI applications in business, driving innovation, and expanding its global footprint.
