March 28th update: Cohere, an AI startup, is in the final stages of negotiations for its latest funding round, aiming for a valuation of $5 billion.
According to a reliable insider, Cohere is discussing the possibility of raising $500 million or more with investors.
Last year, Cohere completed a Series C funding round totaling $270 million, with expectations of major investors from last year participating in this latest round. Reports indicate that the Series C funding announced in June last year pushed the company's valuation over $2.1 billion. It's noted that the funding round was led by Inovia Capital, with strategic investors such as Nvidia, Oracle, and Salesforce Ventures also participating.
The timing of the completion of the new funding round is currently uncertain. Previous media reports have covered related negotiations. Cohere declined to comment on the latest transaction details.
Headquartered in Toronto, Canada, Cohere was founded in 2019, focusing on developing and customizing large language models for clients. Enterprises can utilize Cohere's large language models to distill the essence of customer emails or assist in crafting website content. Cohere's co-founder and CEO, Aidan Gomez, previously worked at Google under Alphabet. Gomez co-authored the seminal paper "Attention is All You Need" in 2017, along with seven other authors, collectively known as the "Transformer Gang." The paper is considered a milestone in AI research, driving innovation in how computers analyze and generate text.
Cohere's rapid growth has long been anticipated by the industry, with expectations of a new round of funding. In August last year, just a few months after the Series C funding was completed, reports emerged that the company was partnering with banks to raise additional funds. In September last year, Cohere established its second headquarters in San Francisco, USA.
As of March this year, Cohere's annual revenue reached $22 million. Earlier this month, the company launched a new conversational AI model called Command R, which is expected to further accelerate revenue growth.
Reportedly, the lead investor for the new funding round is the Canadian pension fund investment management company PSP Investments. (Chen Chen)
