Cohere, a Toronto-based AI firm, is in advanced negotiations to raise up to $3 billion. This potential funding round would significantly exceed the company's previous capital raises and position it as a major player in the enterprise AI market.
The company has previously raised between $1.54 billion and $1.64 billion since 2021. Its annual recurring revenue reached $240 million in early 2026, up from $100 million in mid-2025.
Cohere recently merged with the German firm Aleph Alpha, a deal supported by a $600 million commitment from the Schwarz Group. This transaction targeted a combined valuation of approximately $20 billion, following a $7 billion valuation in September 2025.
The company, founded in 2019 by Aidan Gomez, Nick Frosst, and Ivan Zhang, focuses on large language models for enterprise clients. Recent leadership additions include former Meta executive Joelle Pineau and CFO Francois Chadwick.
Cohere also acquired Reliant AI to expand into sector-specific strategies, such as pharmaceuticals. The company aims to leverage its Canadian and German operations to provide AI infrastructure that avoids US data jurisdiction concerns.
