Jan 20, 2024
Toronto-based startup Cohere — which is developing artificial intelligence (AI) for businesses — is working to raise capital in the ballpark of $500 million to $1 billion.
Reuters, citing sources, said that frenzied investment ignited by ChatGPT that saw AI startups garner a third of venture dollars in the United States last year led to fundraising efforts.
In June, Cohere announced it had raised $270 million in a funding round that valued it at $2.2 billion.
Read more: Generative AI thrives amidst a challenging investment landscape
The Toronto-based startup has been competing with ChatGPT’s creator OpenAI and startup Anthropic while focusing on the business applications of AI like making professionals efficient at their jobs.
It claimed that it has simplified how to search for infectious information for one specialist business customer.
It should be noted that Cohere is seeking funds for developing AI, recruiting talent and growing its sales activities, a person familiar with its capital raise told Reuters.
Founded in 2019, the startup has worked to provide its technology through multiple cloud platforms and has avoided taking financing in the form of credits for its cloud usage.
Cohere CEO Aidan Gomez, who co-authored a seminal paper proposing a now-foundational architecture for AI, did not immediately respond to Reuters's request for comment.
