Cohere in advanced talks to raise up to $3B as enterprise AI race heats up

Cohere, the Toronto-based AI company founded by former Google researchers, is reportedly in advanced talks to raise up to $3 billion. If completed, the round would dwarf every prior fundraise in the company’s history and place it among the most well-capitalized enterprise AI players on the planet. The potential raise comes at a moment when Cohere is already on a tear. The company recently merged with German AI firm Aleph Alpha, backed by a roughly $600 million commitment from Schwarz Group as part of a Series E funding effort. That deal alone targeted a combined valuation of around $20 billion, a nearly threefold jump from the $7 billion valuation Cohere hit after extending its Series D round by $100 million in September 2025. A funding trajectory that keeps compounding Cohere has raised an estimated $1.54 billion to $1.64 billion across multiple rounds since its early days in 2021. A $3 billion raise would roughly double the company’s lifetime capital in a single stroke. The company’s revenue story helps explain why investors keep showing up. Cohere’s annual recurring revenue reached $240 million in early 2026, more than doubling from roughly $100 million annualized in mid-2025. F...