Cohere in talks to raise up to $3-billion at $20-billion valuation

Cohere Inc. is in advanced talks to raise between US$2-billion and US$3-billion, a deal that would value the Toronto-based artificial-intelligence company at US$20-billion and rank as the largest on record by a private Canadian startup. The financing includes potential participation from the Canadian and German governments, according to four sources familiar with the matter. The deal could close as early as next week, though timing may shift, and terms are not finalized. Non-government funding is expected to make up the majority of the investment, with strong private demand. Cohere was valued at roughly US$7-billion last September and has existing backers including Nvidia, Radical Ventures, and the Healthcare of Ontario Pension Plan. Cohere, founded in 2019, builds large language models for companies and governments rather than consumers, counting Royal Bank of Canada and Fujitsu as clients. It positions itself as a sovereign alternative to U.S. tech giants amid geopolitical tensions and a trade war, and recently struck a deal with German firm Aleph Alpha to expand in Europe.