Cohere Reaches $7 Billion Valuation, Forges AMD Alliance Soon After Funding Round

On Wednesday, enterprise AI model developer Cohere announced it secured an additional $100 million, increasing its valuation to $7 billion as an extension of the round disclosed in August. That earlier funding round was an oversubscribed $500 million investment at a $6.8 billion valuation, the company stated at the time.

Cohere also revealed an intriguing partnership twist. While rival OpenAI recently secured a potential $100 billion investment from Nvidia, the leading GPU provider, Cohere has entered into an agreement with AMD, one of its existing investors.

Cohere's full suite of Command AI models—including Command Vision, Translate, and Reasoning—can now operate on AMD's Instinct GPU, a competitor to Nvidia's offerings. Additionally, AMD will utilize Cohere's technology internally as a customer. However, Cohere clarified to TechCrunch that it is not abandoning support for Nvidia GPUs in favor of exclusively supporting AMD.

Cohere emerged as an early leader in the AI model landscape. It was co-founded in 2019 by Aidan Gomez, one of the co-authors of the transformative "transformer" paper that ignited the modern generative AI revolution.

Yet, while a rapid ascent from zero to a $7 billion valuation in six years would have been remarkable a decade ago, Cohere's trajectory has been overshadowed by the meteoric rise of OpenAI and its closest competitor, Anthropic. For instance, OpenAI was reportedly valued at $500 billion last month, while Anthropic reached a $183 billion valuation earlier this month.

Cohere, which has consistently targeted the enterprise market, is now positioning itself for businesses prioritizing AI sovereignty—maintaining local control over data and models instead of entrusting them to foreign entities. Toward this objective, the Business Development Bank of Canada (BDC) and Nexxus Capital Management, recognized for its Singapore network, participated as new investors in this latest $100 million funding round, Cohere confirmed.

Correction: This story has been updated to accurately reflect the international affiliation of investor Nexxus.

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