Cohere aims to raise 458 million euros ($500 million) with a new investment round. The investments should eventually give the AI startup a market value of 4.6 billion euros ($5 billion).
Sources told Reuters that Cohere wants to compete even more with rivals such as OpenAI. To this end, Cohere will pitch more business-oriented AI models, including the recently launched new LLM Command-R.
Command-R should help companies process large volumes of production workloads. To this end, the new LLM offers enhanced Retrieval Augmented Generation (RAG) functionality. This ensures, among other things, that LLMs “hallucinate” less and become much more accurate. To achieve this, the LLM searches private databases and uses this information to improve the accuracy and usefulness of its answers.
Deals with hyperscalers
For models like these, which are more targeted towards business clients, Cohere has a deal with Oracle, among others, and also plans to make its models available on the platforms of all major cloud hyperscalers.
According to sources, the AI startup has also seen its monthly revenue increase significantly. Whereas in December 2023, it recorded a revenue of $13 million, this month that number has increased to $22 million.
Participants in investment round
It is still unknown who will participate in Cohere’s new investment round. Most likely, however, these are already existing investors in the AI startup.
Inovia Capital, Nvidia, and Oracle participated in the last investment round in June 2023. At That Time, at least $270 million was raised, bringing the AI startup’s value to $2.2 billion at the time.
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