AI firm Cohere doubles annualized revenue to $100 million on enterprise focus
By Echo Wang
NEW YORK (Reuters) -AI startup Cohere has doubled its annualized revenue since the beginning of the year, driven by growing demand for secure, customized AI tools among enterprise clients in regulated sectors, the company told Reuters.
The company has crossed an annualized revenue of $100 million as of May 2025, according to one person familiar with the matter.
A Cohere spokesperson declined to comment on the financials.
The growth followed a strategic shift in the third quarter of 2024 with a focus on private deployments tailored for customers in sectors such as finance, healthcare and government.
Chief Executive Aidan Gomez outlined the new direction in a year-end memo, emphasizing a move toward building tailored models for enterprise users over larger foundation models.
Most of its revenue stems from long-term contracts, the company said.
Roughly 85% of Cohere's business now comes from such private deployments, the company said, with margins reaching 80%.
As part of the strategy, Cohere in January launched a ChatGPT-style application called North, aimed at helping knowledge workers with tasks such as summarizing documents. The product is currently being tested with a limited group of customers, including Royal Bank of Canada and LG.
Founded in 2019, Cohere has raised more than $900 million from investors including Nvidia, Cisco and Inovia Capital. Its customers also include Fujitsu, Oracle and Notion. The company was last valued at $5.5 billion.
Cohere's shift toward smaller, specialized models reflects a broader trend in the AI sector, as companies prioritize domain-specific tools over large, generalized systems. The move comes as AI labs report diminishing returns from scaling up model size — a strategy that once drove major breakthroughs.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
17 minutes ago
- Yahoo
Trump offers final trade deadline to countries as markets stall
Trump offers final trade deadline to countries as markets stall originally appeared on TheStreet. The crypto markets remain stalled as the Trump administration has urged countries to submit their best trade offer by Wednesday, Reuters reported on June 2. The crypto market has seen its total capitalization decline from approximately $3.5 trillion to a little above $3.2 trillion within the last 7 days. Similarly, the price of the largest cryptocurrency, Bitcoin, is 7% lower than the all-time high (ATH) it reached on May 22. Other leading cryptocurrencies, such as XRP, SOL, Dogecoin, ADA, and SUI, have seen their prices decline as much as 14% over the last week. The crypto market, which is already well-known for its unpredictability, has seen a great deal of ups and downs as a result of the ebbs and flows of President Donald Trump's tariff war over the last two months. Trump hiked tariffs on all countries on Apr. 2 before pausing them for all except China for 90 days. While the administration has claimed its goal is to finalize 90 trade deals within 90 days, it has so far reached an agreement with only one of its partners, Britain. As per Reuters, it has seen a draft letter the office of the U.S. Trade Representative has sent to countries that are engaged in active negotiations. The countries are supposed to offer their best proposals regarding tariff and quota offers for the purchase of industrial and agricultural imports from the U.S., among other details. The U.S., in turn, will offer "a possible landing zone" after assessing the proposals within days. The letter indicates growing urgency within the Trump administration to finalize deals by the July 8 deadline. Trump offers final trade deadline to countries as markets stall first appeared on TheStreet on Jun 2, 2025 This story was originally reported by TheStreet on Jun 2, 2025, where it first appeared. Sign in to access your portfolio
Yahoo
20 minutes ago
- Yahoo
Exclusive-US made 'tough' requests to Vietnam in trade talks, sources say
By Francesco Guarascio and Phuong Nguyen HANOI (Reuters) -The U.S. has sent a "long" list of "tough" requests to Vietnam in its tariff negotiations, including demands that could force the country to cut its reliance on Chinese industrial goods imports, two people briefed about the matter told Reuters. Washington wants Vietnam-based factories to reduce their use of materials and components from China and is asking the country to control more carefully its production and supply chains, one of the people briefed on the talks said, without elaborating on whether quantitative targets were included. The list is part of an "annex" to a framework text prepared by U.S. negotiators, according to four people familiar with the matter. One of them, who had direct access to the document, said the list was sent to Hanoi at the end of May after the conclusion of a second round of talks with Washington aimed at avoiding 46% "reciprocal" tariffs on imports from Vietnam. The sources declined to be named because those discussions were not public. Reuters reported on Monday that the Trump administration wants countries to provide their best offers on trade negotiations by Wednesday, citing a draft letter to negotiating partners. It was unclear which countries would receive the letter, but it was directed at those with active negotiations that included meetings and exchanges of documents. Washington has been engaged in such talks with countries including Vietnam, the European Union, Japan and India. The sources described the U.S. requests to Vietnam as "tough" and "difficult". It is unclear how Hanoi will respond to Washington's requests and whether it will send its own proposal by Wednesday. The U.S. Trade Representative did not respond to a request for comment outside U.S. business hours. Vietnam's trade ministry did not reply to a request for comment. A source briefed on the matter said if U.S. requests to effectively cut Vietnam's reliance on China were met, they could pose a serious challenge to the Southeast Asian country's economy. Its sprawling manufacturing industry, which produces consumer goods including Apple devices and Nike shoes, is closely integrated into its much bigger neighbour's supply chains. It might also complicate Vietnam's long-standing policy of maintaining good relations with China, a major foreign investor but also a source of security concerns due to conflicting claims in the South China Sea. BOOMING TRADE Vietnam has nearly tripled its exports to the United States since the start of the U.S.-China trade war in 2018, when the first Trump administration imposed wide-ranging tariffs on Beijing, pushing some manufacturers to move production south. But as exports to the U.S. boomed, Vietnam also vastly expanded imports from China, with their inflow almost exactly matching the value and swings of exports to the United States over the years, each totalling around $140 billion in 2024, data from the U.S. and Vietnam show. U.S. officials have long accused Vietnam of being used as a waypoint for Chinese goods destined for the United States. At times, according to the allegations, goods had "Made in Vietnam" labels despite having received no or insufficient added value in the country - allowing Chinese exporters to avoid high U.S. duties on their goods. Aware of the U.S. criticism, Hanoi has launched a crackdown on illegal transhipment of goods. The effect has yet to be seen in trade flows, however, as exports to the United States and imports from China both reached a record high in April, according to the latest data. Vietnam has also repeatedly shown its willingness to reduce non-tariff barriers and to import more U.S. goods, in line with long-standing requests from Washington. In recent weeks, officials have reiterated plans to buy U.S. planes and have signed or pledged multiple non-binding agreements, including on the purchase of farm products and energy. That may, however, not be enough, as U.S. negotiators seek real contracts, one of the people said. Sign in to access your portfolio
Yahoo
28 minutes ago
- Yahoo
TSMC says US tariffs have some impact but AI demand robust
By Wen-Yee Lee HSINCHU, Taiwan (Reuters) -Taiwan's TSMC said on Tuesday that U.S. tariffs were having some impact on the company and had been discussed with Washington, but demand for artificial intelligence (AI) remains strong and continues to outpace supply. U.S. President Donald Trump's trade policies have created much uncertainty for the global chip industry and TSMC, the top producer of the world's most advanced semiconductors whose customers include Apple and Nvidia. Chief Executive C.C. Wei, speaking at TSMC's annual shareholders meeting in the northern Taiwanese city of Hsinchu, said the company had not seen any changes in customer behaviour due to tariff uncertainty and the situation might become clearer in coming months. "Tariffs do have some impact on TSMC, but not directly. That's because tariffs are imposed on importers, not exporters. TSMC is an exporter. However, tariffs can lead to slightly higher prices, and when prices go up, demand may go down," he said. "If demand drops, TSMC's business could be affected. But I can assure you that AI demand has always been very strong and it's consistently outpacing supply." In April, the company, the world's largest contract chipmaker, gave a bullish outlook for the year on robust demand for AI applications. Wei said TSMC had been talking to the U.S. Department of Commerce about tariffs, expressing concern early on that the levies could increase production costs in the country where it is investing $165 billion to build new factories, as some equipment purchased from U.S. suppliers is made in Asia. "The U.S. commerce department said this is open for discussion, but how long that will take remains unclear," he added. "The real point is that we are in active communication, because only through understanding can they realise the consequences." Wei said he had told Trump the extra $100 billion investment, which he announced standing next to the president in March, would be difficult to complete within five years. "He said, 'Mr Wei, do your best, that's good enough.'" Asked about media reports that the company had been looking at building chip factories in the United Arab Emirates, Wei said TSMC had no plans for any such plants in the Middle East because it was "not very likely" they would have customers there. Domestically, TSMC's margins are being pressured by the recent appreciation of the Taiwan dollar, which Wei said had reduced its gross margin by more than 3 percentage points. TSMC also faces broader political risk as China steps up military pressure on democratically and separately governed Taiwan, which Beijing views as "sacred" Chinese territory. "If something happens that we don't want to happen, it's a matter for governments, not for TSMC alone," Wei said, responding to a question about a possible crisis in the Taiwan Strait. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
