According to investors, Toronto-based Cohere, founded in 2019 by former Alphabet employees, has swiftly risen through the AI startup ranks because to their extensive research experience and strong links to Google.
Cohere, an AI foundation model business that competes with Microsoft-backed OpenAI, is in discussions to raise hundreds of millions of dollars in a fundraising round that could value the startup at more than $6 billion, in the latest hint of the generative AI investment frenzy.
According to investors, Toronto-based Cohere, founded in 2019 by former Alphabet employees, has swiftly risen through the AI startup ranks because to their extensive research experience and strong links to Google.
Foundation models are AI systems that have been trained on massive amounts of data and can learn from fresh data to perform a range of tasks. The goal of generative AI is to create human-like creations using computer code that has processed massive quantities of data.
Cohere intends to introduce a new conversation model similar to ChatGPT to allow corporate users to produce text and interact with the model to modify the result. Unlike ChatGPT, Cohere’s technology will primarily be available to developers and enterprises, according to CEO Aidan Gomez.
Gomez declined to comment on the company’s finance situation.
It was unclear how much money Cohere hoped to raise in the current round. Sources requested anonymity in order to discuss private financing issues.
Cohere has received $170 million in funding to date from Index Ventures, Tiger Global, and AI pioneers Geoffrey Hinton, Fei-Fei Li, and Pieter Abbeel.
Cohere competes with foundation model suppliers such as OpenAI and Anthropic in the training of natural language processing (NLP) models.
Gomez stated that the firm distinguishes itself by concentrating on servicing enterprise users, and Cohere has been speaking with organisations in marketing, consulting, and technology to assist them in incorporating generative AI.
Last year, Cohere launched a cloud agreement with Alphabet to gain access to its TPU computing capacity. Its language AI will also be offered in January on Amazon’s fully managed machine learning service SageMaker.
Cohere hired Martin Kon, the former YouTube chief finance officer, to manage its product and market strategy last month. Cohere powers a number of consumer products, including Hyperwrite, which uses AI to help users write quicker and create articles.
Gomez stated that Cohere will focus on text generation models, in contrast to OpenAI, which has provided the GPT-3 model for text as well as the DALL-E model for picture production.
Since the November introduction of ChatGPT, the technology that can create writing, graphics, or computer code on demand has piqued the interest of investors. According to investor sources, other foundation model suppliers, such as Anthropic, are in negotiations to secure money at multi-billion dollar values.
With Microsoft Corp’s $10 billion investment in OpenAI, other major technology corporations, including Alphabet and Oracle, are considering to invest in AI startups, according to sources.
Cohere, according to Gomez, will not make strategic investments that demand exclusive rights.
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