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June 9, 2023

Cohere Raises $270M in Funding, Surpasses $2.1B Valuation

Cohere's AI Model Ecosystem Secures $270M in Series C Funding

Cohere, the visionary AI startup specializing in enterprise AI models, has successfully raised an impressive $270 million in its latest Series C funding round. This substantial investment brings the company's valuation to an impressive $2.1 billion, highlighting the industry's confidence in Cohere's AI model ecosystem. With a focus on data privacy and simplified implementation, Cohere empowers enterprises to leverage their preferred cloud provider while unlocking the potential of advanced AI capabilities. This influx of capital will accelerate Cohere's continued development, support infrastructure expansion, and fuel collaborations with leading global enterprises.

Cohere's journey began in 2019 when Aidan Gomez, Ivan Zhang, and Nick Frosst, a former employee of Google's Toronto AI lab, co-founded the company. Building on their expertise, Cohere rapidly gained recognition by developing multilingual language models trained on native speakers' data, setting them apart from other generative AI startups. Emphasizing enterprise use cases, Cohere's cloud-agnostic AI platform can be deployed across public clouds, existing cloud infrastructure, virtual private clouds, or on-site. The startup's hands-on approach ensures customized large language models (LLMs) tailored to each customer's proprietary data.

Cohere's president and COO, Martin Kon, highlights the significance of the recent funding round. He affirms that the raised capital will facilitate the continuous evolution of Cohere's AI platform, empowering companies to build remarkable products while maintaining data privacy and security. The investment will also enable Cohere to bolster its computational resources, expand its talented team, and engage with a broader range of leading enterprises. By enabling businesses worldwide to harness the power of cutting-edge AI technology, Cohere aims to revolutionize industries across the globe.

While Cohere keeps its customer base confidential, the company has disclosed partnerships with renowned companies like Jasper and HyperWrite for copywriting generation tasks. These collaborations encompass creating marketing content, drafting emails, and developing product descriptions. Additionally, Cohere recently announced a collaboration with LivePerson, a conversational marketing company, to enhance the explainability of its LLMs. Through strategic alliances with news outlets and Salesforce Ventures, Cohere is actively involved in breaking down, analyzing, and summarizing lengthy text using machine learning algorithms.

With approximately 180 employees, Cohere has successfully raised a substantial amount of capital, totaling $445 million, in line with other generative AI startups. Only surpassed by OpenAI ($11.3 billion) and Anthropic ($450 million), Cohere stands ahead of competitors like Inflection AI ($225 million) and Adept ($415 million). The funding received not only demonstrates the investor community's confidence in Cohere's vision but also highlights the capital-intensive nature of training AI models.

As Cohere continues to scale and evolve, Martin Kon identifies "search and retrieval" as the next frontier for the company's growth. By incorporating techniques that enable models and chatbots to expand their knowledge base and search the web for relevant information, Cohere aims to enhance its AI systems' capabilities. This aligns with the broader industry trend, with OpenAI's experimentation in this area serving as an example. Kon envisions a future where chatbots possess real-time knowledge, eliminating the need for memorization during training. The integration of search and retrieval functionality enables users to verify and fact-check information through citations and external sources.

While competitors may have opted for significant investments from specific cloud providers, Cohere remains committed to its independence and cloud-agnostic approach. Kon emphasizes that Cohere values a diversity of global investors.

Neil Hodgson Coyle
Neil Hodgson-Coyle
Editorial chief at TechNews180
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