AI startup Cohere has attracted $6 billion investments
2023.02.06 15:10
AI startup Cohere has attracted $6 billion investments
By Kristina Sobol
Budrigannews.com – Sources told that Cohere, an AI foundation model company competing with Microsoft-backed OpenAI, is in talks to raise hundreds of millions of dollars in a funding round that could value the startup at more than $6 billion. This is the latest indication of the generative AI investment frenzy.
Cohere, based in Toronto and founded by former Alphabet researchers (NASDAQ:) According to investors, in 2019, has risen quickly through the ranks of AI startups due to their extensive research background and close ties to Google.
Foundation models are artificial intelligence systems that can learn from new data and perform a variety of tasks after being trained on extensive data sets. Generative AI aims to use computer code that has processed a lot of data to create things that look like humans.
Cohere intends to release a new dialogue model that is similar to ChatGPT. This model will allow enterprise users to generate text and interact with the model to improve the output. Cohere’s technology, in contrast to ChatGPT, will primarily be available to developers and businesses, CEO Aidan Gomez stated in an interview with Reuters.
“Instead of writing poems, our chat models focus more on business-relevant tasks like answering questions. Gomez stated, “We don’t plan to give them to everyone to use for free without limits.” We want to establish a profitable and long-lasting business.”
Gomez declined to comment on the company’s funding situation.
How much Cohere wanted to raise in this round was not immediately clear. For the purpose of discussing private funding issues, sources requested anonymity.
To date, Index Ventures, Tiger Global, and AI luminaries Geoffrey Hinton, Fei-Fei Li, and Pieter Abbeel have contributed $170 million to Cohere’s funding.
Cohere competes with a group of foundation model providers like OpenAI and Anthropic because it focuses on training NLP models.
According to Gomez, the company distinguishes itself by focusing on enterprise users, and Cohere has talked to businesses in the marketing, consulting, and technology industries to assist them in incorporating generative AI.
Last year, Cohere announced a cloud partnership with Alphabet to utilize the TPU’s computing capacity. In January, its language AI will also be available on Amazon’s SageMaker, a fully managed machine learning service.
Martin Kon, a former chief financial officer at YouTube, was hired by Cohere to lead its product and market strategy last month. Some consumer applications, like Hyperwrite, which helps people write faster and generate articles using AI, are powered by Cohere.
Gomez stated, “We expect this year to be a breakout year for us in terms of bringing in enterprise customers.”
In contrast to OpenAI, which has released the GPT-3 model for text and the DALL-E model for image generation, Gomez stated that Cohere will concentrate on models for the generation of text.
Investors have been paying attention to the technology that can automatically generate prose, images, or computer code ever since ChatGPT went live in November. Investor sources claimed that Anthropic and other foundation model providers are also in talks to raise funding at multi-billion-dollar valuations.
Microsoft Corporation (NASDAQ:) OpenAI’s $10 billion investment, as well as those of Alphabet and Oracle (NYSE:), other major tech companies sources claimed that they are also considering investing in AI startups.
Cohere, according to Gomez, will not accept strategic investments requiring exclusive rights.
Gomez stated, “It’s important for us to remain independent and work with various cloud providers.”
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