OpenAI rival Cohere is looking to raise $500m at a valuation of around $5bn, according to Reuters, citing people familiar with the matter.
Canada-based Cohere was founded by former Google researchers and has specialised in building enterprise-focused AI models.
The startup’s revenue run rate increased to $22m this month from $13m in December, according to Reuters.
Cohere is currently in a partnership with cloud giant Oracle and is looking to expand its models to other leading cloud providers.
The Canadian startup was valued at $2.2bn in June after it raised $270m from NVIDIA, Oracle and other investors.
Cohere’s previous fundraising success highlights how investors are looking to increase spending in GenAI, following the success of OpenAI’s ChatGPT.
The value of global AI deals totalled $331bn throughout 2023, an increase from $211bn in 2022, according to GlobalData’s deal database.
In 2023, the value of global AI deals peaked in the second quarter (Q2), with the sector raising $119bn. This was a slight increase over the beginning of the year, which saw deals valued at $104bn. However, in Q3 the value of AI deals fell significantly lower, totalling $68bn.
GlobalData predicts the total AI market will be worth $908.7bn by 2030.
