An Artificial Intelligence brand, Cohere is known for its foundation models that compete with ChatGPT creator OpenAI is in news due to their latest fundraising of $500 million, which made their valuation $5 billion.

According to the news, the company which was originally Toronto-based has exhibited the growth of their revenue run rate to $22 million from $13 million in December after launching new model Command-R.

The startup which was originally founded by former Google researchers has uplifted their tremendous growth to its investors for building enterprise-focused AI models. The startup brand Cohere which is currently collaborated with Oracle plans to present its models to be available on other major cloud providers.

Cohere was valued at $2.2 billion last June when it raised $270 million from investors including Inovia Capital, Nvidia and Oracle. The new valuation it is seeking had not been reported previously. According to the report of Reuters, Cohere was looking to raise about $500 million to $1 billion.

Currently, Cohere is competing with OpenAI and Anthropic, while focusing on business applications of AI. The foundation model companies are competing with each other fund the expensive development of AI models that require huge amount of computing power and top industry talent.

OpenAI has collected, $1 billion of revenue in 2024, and allocated more than $10 billion from investors including Microsoft. Other AI labs, such as Anthropic and Mistral, have also attracted backing from big tech companies.

The other AI labs, running in loss, are doubtful about venture capital investors who question if the foundation models will ever make enough revenue relative to the huge amount of capital needed to develop them.