Toronto-based AI company Cohere has successfully closed the initial tranche of its Series E funding round. The company is targeting a total raise of up to CAD 7 billion, which is approximately $5.13 billion. Following this first close on October 29, 2026, the firm reached a post-money valuation of CAD 35.7 billion.
The investment round is led by the Schwarz Group, with participation from Bell Ventures and Nvidia. The Government of Canada has also committed to an equity stake of up to CAD 1.6 billion, provided that Cohere fulfills specific infrastructure investment requirements. If the full target is reached, this will mark the largest funding round in Canadian technology history.
Cohere intends to allocate the capital toward advancing its AI model development and expanding computing infrastructure within Canada. To increase its capacity, the firm is exploring additional partnerships with neocloud providers. It has already secured multi-year agreements for GPU clusters with CoreWeave and BUZZ HPC to support AI training processes.
The company focuses on enterprise clients, specifically targeting regulated sectors with strict data handling requirements. As of the third quarter of 2026, Cohere reported a 165% year-over-year growth in annual recurring revenue. Additionally, the company's customer base has expanded to 300, representing a 20-fold increase.
