Despite modest revenue figures, Cohere has attracted significant investor interest, with existing investors expected to participate in the new round of financing. The startup, founded by ex-Google researchers, has demonstrated its growth potential through the development of AI models for enterprises and collaborations with companies like Oracle. The continued investor interest highlights the anticipated future use of AI technologies, despite the high costs associated with developing AI models.
Key takeaways:
- Cohere, an AI startup that rivals OpenAI, has been struggling with revenue despite successful fundraising and high valuation, making only about $13 million in annual revenue by the end of 2023.
- Despite its revenue figures, Cohere is reportedly in advanced talks to raise $500 million at a valuation of about $5 billion, and managed to raise its annualized revenue from $13 million in December to $22 million this month.
- The startup, founded by ex-Google researchers, has showcased its expansion capabilities through the development of AI models tailored for enterprises and has an existing collaboration with Oracle.
- In January, it was disclosed that Cohere was seeking to secure between $500 million and $1 billion in funding, with current investors expected to participate in this new round of financing.