Cohere's revenue has also seen a substantial increase, reaching $35 million in annualized revenue by the end of March, up from $13 million the previous year. Despite the high costs associated with AI development, the company is likely to benefit from the Canadian government's plan to invest C$2.4 billion ($1.77 billion) in AI and computing research. However, the overall funding trend for AI startups is slowing, with venture capital deal value for early-stage AI deals dropping by 76% in the first quarter of this year.
Key takeaways:
- Canadian AI startup Cohere has raised $450 million in funding from investors including Nvidia, Salesforce Ventures, Cisco, and Canadian pension fund PSP Investments.
- The company is still in talks to raise more in the same round at a $5 billion valuation, marking a significant increase from its previous valuation of $2.2 billion.
- Cohere, which generates revenue by selling its AI models and applications to enterprises, saw its annualized revenue rise to $35 million by the end of March, up from $13 million last year.
- Despite the recent funding craze for AI startups slowing down, Cohere is likely to benefit from the Canadian government's plan to invest C$2.4 billion ($1.77 billion) in compute and AI research for homegrown AI companies.