Cohere, a NVIDIA Corp (NASDAQ:NVDA, ETR:NVD)-backed AI startup, is in talks to raise $500 million at a valuation of $5 billion, according to a Reuters report.
The company was valued at $2.2 billion last June when it raised $270 million, with investors including Nvidia, Oracle Corp (NYSE:ORCL, ETR:ORC), and Inovia Capital.
A person familiar with the matter told Reuters that existing investors are likely to join the latest fundraising round.
The source added that the company has seen its annualized revenue run rate increase to $22 million this month, up from $13 million in December following the release of their new model Command-R.
Founded by former Google employees, Toronto-based Cohere is focused on enterprise AI applications, in competition with OpenAI and Anthropic.
It is partnered with Oracle and intends to make its models available on other major cloud service providers.