Aidan Gomez, CEO of Cohere Inc., at the Bloomberg Tech Summit in London, UK, Tuesday, October 21, 2025.
Chris Ratcliffe | Bloomberg | Getty Images
Artificial intelligence to start up Join told investors that it is seeing momentum with enterprise customers, even as competitors like Google, Anthropic And OpenAI claw for market share.
Cohere reached about $240 million in annual recurring revenue last year, surpassing its goal of $200 million, according to a February investor note seen by CNBC. It recorded quarterly growth of more than 50% throughout 2025, the memo said.
“Our thesis clearly resonates in the market,” the company writes. “Our sales pipeline continues to grow as global organizations in regulated industries choose Cohere as their trusted partner for secure AI adoption at scale.
Founded in Toronto in 2019, Cohere develops models and creates software tools for businesses. The company is supported by investors including Nvidia And Salesforce Companiesand its valuation increased to approximately 7 billion dollars.
Cohere’s investor note comes after CEO Aidan Gomez said in October that the startup hoped to debut on the public market “soon.” He told Bloomberg that he believes investors would welcome a “pure AI investment opportunity.”
But Cohere’s competitors, OpenAI and Anthropic, are also considering potential IPOs, according to people familiar with the companies’ reasoning. And they did not hesitate to ambitions to win in the business market.
OpenAI said in November that more than 1 million Companies around the world use the company’s technology, and Anthropic said in September that it serves more than 300,000 businesses. These large customer bases present real challenges for other startups looking to keep up.
Cohere told investors its “capital efficient model” sets it apart from industry competitors.
The company primarily generates revenue from software and said it can avoid high infrastructure costs because customers can run its models through managed cloud services or directly on their own hardware. This approach allows Cohere to invest “more aggressively” in customer acquisition and research and development, according to its investor note.
Cohere’s gross margins averaged about 70% in 2025, up 25 basis points year over year, the note said.
“By scaling compute resources in proportion to customer demand, we remain insulated from the speculative excesses surrounding the broader AI market, positioning Cohere for more sustainable growth,” Cohere wrote.
In 2026, Cohere announced that it will continue its expansion in Europe and develop its AI agent platform, North. The company told investors it expects another year of “rapid growth.”
