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AI Startup Cohere Reportedly Taps JPMorgan and Goldman Sachs for Financing

The media, citing insiders, reported that Cohere, which operates in the field of artificial intelligence and receives support from investors, including Oracle and Nvidia, is currently interacting with banks in preparation for a new round of financing a few months after the completion of the previous one.

AI Startup Cohere Reportedly Taps JPMorgan and Goldman Sachs for Financing

Cohere is based in Toronto. The company is currently consulting with JPMorgan and Goldman Sachs about a potentially possible new round of fundraising. The information was reported by the media with reference to persons who are aware of this process, which is not officially designated in the public space. Insiders noted that the participants of the events perceive them as actions of a purely private nature.

Currently, the negotiation process is at the initial stage. So far, there is no clarity about the details of the new round of financing and the amount that the startup is going to receive has not yet been definitively determined.

Cohere is a competitor of OpenAI. According to media reports, in June, this startup managed to raise investment funds in the amount of $270 million. Then the value of the company was estimated at $2.2 billion. Insiders report that during the new round, which has not yet been agreed, the firm intends to receive more investment funds than at the beginning of the summer.

Representatives of Cohere, JPMorgan, and Goldman Sachs did not respond to a media request for comments on information about the negotiation process. Insiders who are aware of the startup’s position say that the firm hopes that the involvement of financial institutions will make the fundraising process more efficient. A lot of investors took part in the June round. In part, the number of participants contributed to the receipt of a large sum. It will not be easy to repeat such an experience. Finding new investors is not the easiest task. At the same time, the startup reasonably believes that the participation of financial institutions will improve efficiency.

Currently, many technology companies that are at the initial stage of existence are faced with the problem of falling in value, because of which they are forced to raise funds at low prices. At the same time, firms specializing in artificial intelligence, fix a wave of interest from investors. The revolutionary nature of the new generation of technology and the potential contained in it to transform the space of human existence explain the popularity of AI in terms of financial attractiveness. For example, AI21 Labs, based in Tel Aviv, on Wednesday, August 30, announced that it had managed to raise capital from investors, including Nvidia and Google, in the amount of $1.4 billion.

Cohere was founded in 2019. The startup is developing large language models, which are software trained to analyze and generate text in the Internet space. The company also sets up LLM for users. Consumers can use the startup’s products for the purpose of summarizing emails or writing a copy of a website.

Cohere co-founder and CEO Aidan Gomez previously worked at Google. He is the co-author of a 2017 article on AI research, which has become a catalyst for progress in the methodology of computer analysis and text generation.

As we have reported earlier, AI Startup Hugging Face Raises $235 Million.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.