Tech Giants Back Cohere’s Large Language Model Technology
According to Reuters, Toronto-based artificial intelligence (AI) company Cohere has raised $450 million in a funding round led by Salesforce Ventures, Nvidia, and Cisco. This huge investment demonstrates the growing interest and promise for large language models (LLMs) in the IT industry.
Cohere’s LLM Technology and its Applications
Cohere develops LLMs, a sort of AI capable of processing and analyzing massive volumes of text material. These models are trained on enormous text and code datasets, enabling them to learn and generate human-like prose, translate languages, write various types of creative material, and provide meaningful answers to inquiries. Cohere’s technology is customizable, allowing it to be integrated into a variety of applications, such as interactive conversation and text production.
A Funding Round Underscoring the Rise of AI Valuations
The investment in Cohere reflects a broader trend in the AI startup landscape: skyrocketing valuations. Just a year ago, Cohere’s Series C funding round, led by Inovia Capital, valued the company at $2.2 billion. This latest round more than doubles that valuation, demonstrating the immense potential investors see in Cohere’s LLM technology.
Prominent Investors Back Cohere’s Growth
The funding round boasts participation from several heavyweight investors, including:
- Salesforce Ventures: The venture capital arm of cloud computing leader Salesforce.
- Nvidia: A global leader in computing processors, especially for graphics processing units (GPUs) critical for training AI models.
- Cisco: A networking technology company with a growing focus on AI solutions.
- Canadian Pension Fund PSP Investments: A major institutional investor backing Canadian technology companies.
Notably, this isn’t the first time Nvidia and Salesforce have invested in Cohere. Both companies participated in Cohere’s Series C round last year, underlining their continued belief in the company’s future.
More Investment Likely on the Horizon
According to Reuters, the $450 million may only be the first tranche of the investment round. According to the report, Cohere will likely continue to raise funds in the near future. This fresh funding infusion would enable Cohere to advance its LLM technology and broaden its market presence.
AI Investment Boom: A Look at Industry Trends
Cohere’s funding round is just one example of the ongoing investment boom in the AI sector. Here’s a glimpse into some recent developments that highlight this trend:
- CoreWeave’s $1.1 Billion Round: In May 2024, AI cloud infrastructure startup CoreWeave secured a $1.1 billion funding round led by Coatue. This investment valued the company at a staggering $19 billion, marking a nearly threefold increase from its valuation just five months prior.
- Mistral AI’s Potential $6 Billion Valuation: Paris-based Mistral AI, a competitor to OpenAI and Anthropic, reportedly neared completion of a $600 million funding round in May 2024. This round, backed by existing investors General Catalyst and Lightspeed Venture Partners, was expected to propel Mistral’s valuation to $6 billion, tripling its value since December 2023.
- xAI’s $6 Billion Fundraise: Last week, Elon Musk’s generative AI startup, xAI, officially announced a $6 billion funding round. The round attracted a powerhouse group of investors, including Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, Fidelity Management & Research Co., Prince Alwaleed Bin Talal, and Kingdom Holding Co. This hefty investment valued the 10-month-old company at a staggering $24 billion post-money, making it the second-most valuable generative AI company globally, behind only OpenAI.
Cisco Invests in the Future of AI
Cisco, a corporation best known for its networking solutions, made waves in the AI field this week. Aside from its involvement in Cohere’s capital round, Cisco announced the establishment of a dedicated $1 billion AI investment fund. The goal of this fund is to “bolster the startup ecosystem and expand the development of secure and reliable AI solutions.” As part of this strategy, Cisco disclosed significant investments in Cohere, Mistral AI, and Scale AI from prior funding rounds. The corporation has already invested roughly $200 million from its new investment fund, demonstrating its commitment to encouraging innovation in AI.
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