Cohere’s $240M year sets stage for IPO

While the biggest AI labs — including Google, Anthropic, and OpenAI — compete aggressively for enterprise adoption, Canadian AI startup Cohere has been quietly putting up strong numbers.

In a memo shared with investors, the company said it surpassed its $200 million annual recurring revenue goal in 2025, reaching $240 million. The memo also noted quarter-over-quarter growth of more than 50% throughout the year, according to CNBC.

Cohere was founded in 2019 and is backed by major enterprise-focused tech investors, including Nvidia, AMD, and Salesforce. The company’s core product is its Command family of generative AI models, which Cohere says are efficient enough to run on limited GPU resources, making them a compelling pitch for enterprises looking to manage costs and compute constraints while adopting advanced AI tools.

Last summer, Cohere expanded its enterprise strategy with the launch of North, a higher-level AI workspace and platform designed for secure, customised AI agents and workflows built on top of Cohere’s models.

Cohere CEO Aidan Gomez said last October that the company could IPO “soon.” If “soon” ends up meaning 2026, Cohere could find itself lining up against other major names — including OpenAI, Anthropic, and SpaceX/xAI — which have all reportedly been considering their own public-market debuts.