AI Startup Cohere Raises $500M, Valued at $6.8B Amidst Growing Competition

Cohere, an AI startup, has raised $500 million in a new funding round, valuing the company at $6.8 billion. The round was led by Radical Ventures and Inovia Capital, with participation from Nvidia and AMD Ventures. Cohere, which sells AI software to businesses, faces growing competition from rivals like OpenAI and Anthropic. The company has appointed two new executives, Joelle Pineau as Chief AI Officer and Francois Chadwick as CFO.

Artificial intelligence startup Cohere Inc. has raised $500 million in a new round of funding, valuing the company at $6.8 billion. The funding round, announced on August 14, 2025, was led by Radical Ventures and Inovia Capital, with participation from existing investors including Nvidia Corp. and AMD Ventures [1].

Founded in 2019, Cohere is focused on selling AI software to businesses rather than consumers. However, the company faces growing competition from better-funded rivals such as OpenAI and Anthropic, which are also targeting the enterprise market to offset the immense cost of AI development [1].

In addition to the new financing, Cohere has appointed two new executives in key roles. Joelle Pineau, who previously oversaw AI research at Meta Platforms Inc., is joining as Cohere’s chief AI officer. Francois Chadwick, a former Uber Technologies Inc. executive, is taking over as the startup’s chief financial officer [1].

The appointment of Pineau is a significant move for Cohere, as she brings extensive experience in AI research and development. Prior to joining Cohere, Pineau was the VP of AI research at Meta, where she oversaw the company's fundamental AI research (FAIR) lab. Her hire signals Cohere's intent to revamp its AI efforts and improve its research and product pipeline [2].

Cohere's latest product is an AI agent platform dubbed North, which enterprises and government agencies can deploy privately on their own infrastructure. This platform is aimed at businesses and government agencies that handle highly sensitive data, putting Cohere in competition with open-source providers like DeepSeek and Meta [2].

The funding round comes at a pivotal moment for Cohere, as the company is reportedly seeking to raise up to $500 million at a $6.3 billion valuation. This valuation reflects the growing competition in the AI market and the increasing costs associated with AI development [1].

References:
[1] https://www.bloomberg.com/news/articles/2025-08-14/ai-startup-cohere-valued-at-6-8-billion-with-new-funding
[2] https://techcrunch.com/2025/08/14/cohere-hires-long-time-meta-research-head-joelle-pineau-as-its-chief-ai-officer/