Cohere Hits $7B Valuation A Month After Its Last Raise, Partners With AMD
Cohere hits $7B valuation a month after its last raise, marking a major milestone for the enterprise AI company. Just weeks after announcing a $500 million oversubscribed round, Cohere has secured an additional $100 million, pushing its valuation higher and strengthening its position in the AI race.
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But the headline isn’t just the funding. Cohere also unveiled a key partnership with AMD that could shape the future of its AI model performance and infrastructure.
Cohere’s $7B Valuation Comes Fast On The Heels Of Last Month’s Raise
The AI model maker announced that this new $100 million extension builds on the $500 million raise it closed in August at a $6.8 billion valuation. Now, with the updated numbers, Cohere sits at a $7 billion valuation, proving investor confidence in its enterprise-focused approach to AI.
Founded in 2019 by Aidan Gomez, one of the authors of the famous “transformer” paper, Cohere has always differentiated itself by focusing on enterprise use cases rather than consumer products.
A Strategic Partnership With AMD
Alongside the funding update, Cohere revealed a partnership with AMD, one of its key investors. This move signals an alternative path compared to rivals like OpenAI, which recently secured a massive deal with Nvidia.
Cohere’s Command-family of models — including vision, translation, and reasoning — will now run on AMD’s Instinct GPUs, giving enterprises more options beyond Nvidia. Importantly, AMD will also use Cohere internally, solidifying the partnership as both strategic and practical.
Cohere emphasized that it won’t abandon support for Nvidia GPUs, but the AMD deal diversifies its hardware compatibility and gives it more resilience in the AI infrastructure race.
How Cohere Compares To Rivals
While Cohere’s $7 billion valuation is impressive, it still pales in comparison to the staggering numbers posted by competitors. OpenAI was recently valued at around $500 billion, while Anthropic hit $183 billion earlier this month.
Yet, Cohere’s enterprise-first strategy may allow it to carve out a profitable niche. By targeting businesses with reliable, scalable AI solutions, Cohere positions itself as the go-to player for companies that want trusted tools without the consumer hype.
Cohere’s rapid rise underscores two key trends: investor appetite for AI companies and the growing importance of hardware partnerships. By joining forces with AMD, Cohere not only broadens its tech foundation but also signals that the GPU race isn’t just a one-horse show dominated by Nvidia.
As enterprises look for efficient and cost-effective AI solutions, Cohere’s strategy could help it stand out in an increasingly competitive landscape.
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