Cohere's Revenue Doubles Rapidly

AI startup Cohere has more than doubled its revenue since the start of 2025, reaching an annualised revenue of $100 million by May. This growth is fuelled by enterprise demand for secure, customised AI tools, particularly in regulated sectors like finance and healthcare. Cohere strategically shifted its focus in late 2024 towards private deployments for enterprise clients, with 85% of revenue now derived from these deployments, boasting profit margins of 80%.

Cohere's shift towards domain-specific models reflects a broader industry trend, as AI labs encounter diminishing returns from scaling model size. The company launched 'North', a ChatGPT-style application for knowledge workers, currently being tested by clients like Royal Bank of Canada and LG. Backed by investors including Nvidia, Cisco and Inovia Capital, Cohere has raised over $900 million and is valued at $5.5 billion. Competitors include OpenAI and Anthropic, but Cohere focuses on enterprise-grade AI solutions.

Founded in 2019, Cohere aims to democratise access to powerful AI tools, enabling businesses to harness the full potential of generative AI for their growth and success. The company's strategic focus on tailored solutions for regulated industries has yielded exceptional unit economics, contrasting with consumer-focused AI companies that often struggle with monetisation.