What's Happening?
Enterprise AI model-maker Cohere has raised an additional $100 million, increasing its valuation to $7 billion. This follows an oversubscribed $500 million round in August. Cohere has partnered with AMD, allowing its Command-family AI models to run on AMD's Instinct GPU. AMD will also use Cohere's models internally. Despite the partnership, Cohere will continue supporting Nvidia GPUs. Cohere, founded in 2019, focuses on the enterprise market, emphasizing AI sovereignty and local control of data and models. New investors include Business Development Bank of Canada and Nexxus Capital Management.
Why It's Important?
Cohere's partnership with AMD and its significant valuation highlight the growing importance of AI in the enterprise sector. The ability to run AI models on AMD's GPUs offers an alternative to Nvidia, potentially increasing competition in the GPU market. Cohere's focus on AI sovereignty addresses concerns about data control and privacy, appealing to enterprises that prioritize local management of their AI systems. The investment from Canadian and Mexican funds indicates a broader interest in AI development across North America, potentially influencing regional economic growth and technological innovation.
