AI D-A-M-N/Nvidia Leads $500M Investment in Cohere, Boosting Valuation to $6.8B

Nvidia Leads $500M Investment in Cohere, Boosting Valuation to $6.8B

Nvidia Leads $500M Investment in Cohere, Boosting Valuation to $6.8B

Toronto, August 15, 2025 — Cohere, a leading developer of enterprise-level large language models (LLMs), announced today it has closed a $500 million funding round co-led by Radical Ventures and Inovia Capital, with participation from Nvidia, AMD Ventures, and Salesforce Ventures. The investment catapults Cohere's valuation from $5 billion to $6.8 billion.

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Image source note: The image is AI-generated, and the image licensing service is Midjourney

Cohere's Growing AI Portfolio

Founded in Toronto, Cohere has made waves in the AI industry with its Command series of LLMs. The flagship model, Command A, launched in March 2025, reportedly matches GPT-4's performance on multiple tasks while delivering 75% faster response times. Beyond language models, Cohere offers advanced embedding technology that converts documents into neural network-friendly numerical formats, now capable of processing 200-page documents and multi-modal records.

Enterprise Solutions and Revenue Growth

Cohere provides businesses with flexible deployment options:

  • Cloud API access
  • On-premise solutions with isolated configurations for enhanced security

The company reports surging demand, with projected annualized revenue exceeding $200 million by year-end—nearly double its February figures.

Leadership Shakeup and Strategic Moves

The funding announcement coincided with two high-profile executive appointments:

  1. Joelle Pineau, former head of Meta's FAIR lab, joins as Chief Artificial Intelligence Officer
  2. Francois Chadwick, ex-Uber executive, takes the reins as Chief Technology Officer

Pineau revealed plans to expand Cohere's research team, potentially recruiting talent from Meta. Chadwick's appointment signals potential IPO preparations.

The fresh capital may fuel acquisitions following Cohere's recent purchase of Vancouver-based Ottogrid, an AI platform specializing in accelerated market research.

Key Points:

  • 💰 $500M funding round elevates valuation to $6.8B
  • 🤖 Command A LLM rivals GPT-4 with faster performance
  • 🚀 Revenue projected to surpass $200M annually
  • 👥 New executive team hints at IPO ambitions
  • 🔍 Acquisition strategy underway with Ottogrid purchase