Nvidia Corp NVDA backed AI startup Cohere Inc., has reportedly emerged as one of the most valuable AI companies globally, with a valuation of $5.5 billion at a recent funding round, making it one of Canada’s largest startups.
Unlike its Silicon Valley counterparts, Cohere focuses on creating large language models for businesses rather than consumer-facing apps.
The startup raised $500 million in a Series D funding round led by PSP Investments. New backers include Cisco Systems Inc CSCO, Fujitsu, AMD Ventures, and Canada’s export credit agency EDC, reported Bloomberg.
This new funding more than doubles Cohere’s valuation from the previous year and brings its total funding to $970 million.
Last valued at $2.2 billion in June, when it raised $270 million, Cohere's sought-after valuation has surged.
Cohere is known for developing massive large language models, a field dominated by companies like OpenAI, Anthropic, and Alphabet Inc’s GOOGL GOOG Google.
The startup’s practical approach aims to improve business efficiencies rather than pursuing ambitious goals like artificial general intelligence.
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Cohere recently launched its most powerful model, Command R+, designed to compete with rivals like OpenAI at a lower cost.
As of March, Cohere reported $35 million in annualized revenue and plans to double its headcount from 250 employees.
The company supports a wide range of industries, including banks, tech firms, and retailers, with its models being used across 10 languages.
Nvidia, which has become the posterchild of the AI revolution, is not only catering to the rising demand for its advanced chips but has also become a venture capital investor in firms leveraging the technology.
The chip major has reportedly invested in about three dozen startups, with investments in other companies rising sharply from $300 million a year ago to $1.55 billion at end-January.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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