Canadian AI Startup Soars to $7 Billion Valuation Following Major Funding Round
Silicon Valley North's latest unicorn just got a whole lot hornier.
The Funding Frenzy
Fresh capital injection rockets the artificial intelligence firm into rarefied air—joining Canada's elite billion-dollar club. Investors pile into what they're calling 'the next frontier in machine learning applications.'
Valuation Vertigo
That staggering $7 billion price tag represents one of the largest private tech valuations in Canadian history. The startup now rivals established tech giants in market value—despite having revenue streams that would make a lemonade stand look diversified.
AI Gold Rush
Every venture capitalist with a checkbook suddenly becomes an artificial intelligence expert. They're betting big on algorithms that promise to revolutionize industries from healthcare to finance—because if there's one thing Wall Street loves, it's paying premium prices for technology they don't understand.
The startup's trajectory mirrors crypto's early days—sky-high valuations fueled by speculative fervor rather than actual adoption. But hey, at least this bubble comes with better PowerPoint presentations.
Several major companies have teamed up with Cohere for their AI needs
Oracle Corp., Dell Technologies Inc., McKinsey & Co. and Royal Bank of Canada all work with the firm. In July, BCE Inc. made a deal to add Cohere’s AI models to its services. The Canadian government also signed a preliminary agreement to use more of the company’s technology in public offices.
Company leader Aidan Gomez said Cohere’s earnings doubled this year compared to last year. The firm now has around 450 workers spread across seven offices worldwide.
With total funding of roughly $1.6 billion, Cohere now ranks as one of Canada’s biggest startup companies. Another Canadian AI firm, Coveo Solutions Inc., went public in 2021 right before tech stock prices dropped sharply. While Coveo has had trouble bouncing back, its stock price has jumped about 45% this year.
Nvidia’s AI deal was a result of last-minute negotiations
The AI industry saw another major development this week when two industry giants announced a massive partnership.
Through quick talks, late-night phone calls and last-minute changes to contracts, the companies struck a $100 billion deal on Monday, just hours before one executive had to catch a flight to Abilene, a city of about 130,000 people located roughly 180 miles west of Dallas.
The timing worked out because both company leaders had been part of President Donald Trump’s official visit to the U.K. the week before, which allowed the president to learn about the agreement several days ahead of time.
One executive called the deal “monumental in size” when speaking to CNBC, marking a major shift in the tech world as money and power become more focused in the hands of the two companies at the center of the AI boom. On the other hand, some analysts are worried about an AI bubble, according to an earlier report by Cryptopolitan.
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