Cohere, a Toronto-based AI startup, has successfully raised $500 million from prominent investors like Cisco, AMD, and Fujitsu.
The funding round also saw contributions from Canadian pension investment manager PSP Investments and Canada’s export credit agency EDC, bringing Cohere’s valuation to an impressive $5.5 billion.
Specializing in large language models for businesses, Cohere has attracted high-profile clients such as Notion Labs and Oracle. Their cutting-edge technology boosts efficiency by generating text and aiding with tasks like writing website copy and customer communication.
Just a day after the funding announcement, Cohere revealed plans to lay off around 20 employees, roughly 5% of its workforce. A Cohere representative told CNBC, “With our most recent round of financing in place, we have a clear vision for the future of Cohere, which has required some internal realignment.”
Despite the layoffs, Cohere remains optimistic about growth. The company plans to double its workforce this year as it aims to expand internationally. They are actively hiring in various areas, including customer operations, partnerships, revenue, sales, product design, and modeling.
With substantial new funding and a vision for the future, Cohere is poised for significant growth and innovation in the AI industry.