From Yahoo Finance: 2025-05-15 16:32:00

AI startup Cohere has doubled its annualized revenue to $100 million since the beginning of the year, driven by demand for secure, customized AI tools in regulated sectors like finance and healthcare.

CEO Aidan Gomez outlined a shift in strategy towards private deployments for enterprise users, focusing on building tailored models over larger foundation models. Roughly 85% of Cohere’s business now comes from private deployments with margins at 80%.

Cohere recently launched North, a ChatGPT-style application to help knowledge workers with tasks like summarizing documents. The product is being tested with customers like Royal Bank of Canada and LG, reflecting the company’s move towards smaller, specialized AI models.

Founded in 2019, Cohere has raised over $900 million from investors like Nvidia and Cisco. Its shift towards specialized models mirrors a broader trend in the AI sector, as companies prioritize domain-specific tools over large, generalized systems for better results.

Read more: AI firm Cohere doubles annualized revenue to $100 million on enterprise focus