Artificial Intelligence (AI)

Cohere raises $100 million at a $7 billion valuation and partners with AMD

Ken Metral

Ken Metral

— 1 min read
Cosmico - Cohere raises $100 million at a $7 billion valuation and partners with AMD
Credit: Cohere, Inc.

Enterprise AI startup Cohere announced Wednesday that it has raised an additional $100 million in funding, pushing its valuation to $7 billion. The extension builds on an oversubscribed $500 million round closed in August, which had valued the company at $6.8 billion.

Alongside the funding, Cohere revealed a new partnership with chipmaker AMD—one of its investors—that sets the company apart from competitors. While rival OpenAI has recently secured a massive, up-to-$100 billion investment commitment from Nvidia, Cohere will collaborate with Nvidia’s main rival in the GPU market.

Under the agreement, Cohere’s full suite of Command-family AI models—including vision, translation, and reasoning—will run on AMD’s Instinct GPUs. AMD will also become a Cohere customer, deploying its AI tools internally. Still, Cohere emphasized that it will continue supporting Nvidia GPUs rather than limiting its platform exclusively to AMD hardware.

Founded in 2019 by Aidan Gomez, one of the co-authors of the seminal “Transformer” paper that laid the foundation for modern generative AI, Cohere was once seen as an early frontrunner in the AI race. But the company’s trajectory has been eclipsed by the meteoric rise of OpenAI, now valued around $500 billion, and Anthropic, which recently hit a valuation of $183 billion.

Cohere has carved out a niche by focusing on enterprise customers and emphasizing AI sovereignty—giving organizations greater local control over their data and models instead of relying on foreign entities. This positioning has resonated with investors like the Business Development Bank of Canada and Nexxus Capital Management, both of which joined the latest $100 million extension.

With its valuation up modestly but momentum in enterprise markets growing, Cohere appears intent on staking its claim in the increasingly competitive world of enterprise AI infrastructure—where control, flexibility, and hardware partnerships could determine the next phase of growth.

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