Cohere Secures $100 Million Funding Boost, Surges to $7 Billion Valuation

Toronto-based artificial intelligence (AI) startup Cohere has secured an additional $100 million in funding, elevating its valuation to $7 billion. This latest investment, announced on September 24, 2025, comes from the Business Development Bank of Canada and Nexxus Capital Management. The funding follows a $500 million round in August, led by Radical Ventures and Inovia Capital, with participation from Nvidia, AMD, and Salesforce.

Founded in 2019 by former Google researchers Aidan Gomez, Ivan Zhang, and Nick Frosst, Cohere specializes in developing large language models tailored for enterprise applications. The company focuses on providing secure and private AI solutions for sectors such as finance, healthcare, and government.

In conjunction with the new funding, Cohere has expanded its partnership with semiconductor company AMD. This collaboration enables Cohere's AI models, including the Command A series and North platform, to operate on AMD's Instinct GPU infrastructure. Additionally, AMD plans to integrate Cohere's North platform into its internal enterprise AI portfolio.

"We are excited to further expand our relationship with AMD with the availability of many of our models and North on AMD Instinct GPUs," said Nick Frosst, co-founder of Cohere. "Given public and private sector customers the ability to deploy our full suite of technology across our foundational models and security-optimized enterprise AI products gives them significantly greater flexibility in how they choose to deploy Cohere’s AI."

Vamsi Boppana, senior vice president of AI at AMD, commented, "Cohere’s full-stack AI solutions are now deployable on AMD Instinct infrastructure, empowering organizations and governments to scale AI with exceptional performance, efficiency, and memory capacity."

Cohere's product suite includes the Command A series, AI models designed for various enterprise applications, and the North platform, a ChatGPT-style tool aimed at assisting knowledge workers with tasks like document summarization. The company has established partnerships with prominent enterprise technology entities, including Oracle, Dell, Bell, Fujitsu, LG's consulting service CNS, and SAP.

In May 2025, Cohere reported doubling its annualized revenue to $100 million, driven by its strategic shift toward providing customized, secure AI solutions for enterprise clients.

The partnership between Cohere and AMD is expected to accelerate the development and deployment of AI solutions, particularly in enterprise and government sectors. Cohere's expansion and increased valuation reflect the growing investment and interest in AI technologies, contributing to economic growth in the tech sector. The collaboration emphasizes the importance of secure and private AI models, addressing concerns about data sovereignty and compliance with national data regulations.

Cohere's recent funding and strategic partnership with AMD highlight its rapid ascent in the AI industry. By focusing on secure, enterprise-specific AI solutions and collaborating with leading hardware providers, Cohere is well-positioned to play a pivotal role in the future of artificial intelligence applications in business and government sectors.