Toronto-based AI firm Cohere is currently in advanced negotiations to secure between $2 billion and $3 billion in new funding. The proposed deal aims to reach a valuation of $20 billion. According to reports, the round could potentially close as early as next week, though the schedule of CEO Aidan Gomez may impact the final timeline.
The company previously reached a valuation of $7 billion in September 2025. If the current round concludes at the target valuation, it will mark the largest funding event for a private Canadian startup. The majority of the capital is expected to come from private investors, following a $600 million commitment from the Schwarz Group earlier this year.
Cohere focuses on providing AI models for enterprise and government infrastructure. The company reported an annual recurring revenue of approximately $240 million at the end of 2025. Its client base includes major organizations such as Oracle, Fujitsu, Notion, and the Royal Bank of Canada.
Government support remains a key component of the company's strategy. The Canadian federal government previously committed $240 million for a domestic AI data center in December 2024. Additionally, a new national fund provides $500 million to take equity stakes in domestic AI firms, while German interests continue to align with the company's sovereign AI model.
