Ottawa takes stake in Cohere as AI company opens $4.5 billion funding round
NVDA•Canada will invest up to C$1.6 billion in Cohere as the AI company opens a funding round targeting C$7 billion and valuing it at about C$36 billion. Cohere said annual recurring revenue grew 165% year over year as of the third quarter, with 300 customers.
1. Government joins funding round
The Canadian government is taking an equity stake in Cohere, joining a funding round led by Germany’s Schwarz Group that targets C$7 billion ($4.49 billion) and values the Toronto-based AI company at about C$36 billion. Prime Minister Mark Carney said Ottawa would invest up to C$1.6 billion; Nvidia and BCE’s Bell Canada subsidiary were also among the investors.
2. Investment and expansion plans
Cohere said it will use the funding for model development, products for regulated industries and computing infrastructure. Carney said Cohere’s incorporation and headquarters will remain in Canada, and that the company will invest at least C$1.7 billion in new Canadian computing infrastructure by 2030.
3. Revenue and round status
Cohere said its annual recurring revenue grew 165% year over year as of the third quarter and its customer count reached 300. The company has completed only an initial close and did not disclose how much had been committed or when it expects the round to close.
