Cohere’s $240M public paves the way for an IPO

While top AI labs like Google, Anthropic, and OpenAI are seeking enterprise adoption, Canadian AI startup Cohere has been quietly cleaning up.

The startup told investors in a note that it surpassed its annual recurring revenue target of $200 million in 2025, reaching $240 million with more than 50% quarterly growth over the year, according to CNBC.

Cohere was founded in 2019 and is backed by enterprise technology investors such as Nvidia, AMD, and Salesforce. The startup’s core technology is the Command family of generative AI models, which Cohere says is powerful enough to be deployed on limited GPUs — an attractive promise for organizations looking to get a handle on cost and resource management.

Last summer, it launched Cohere North, a high-level enterprise platform and AI workspace for secure, personalized AI agents and workflows built on Cohere models.

Cohere CEO Aidan Gomez said last October that the startup may go public “soon.” If “soon” means in 2026, Cohere could be competing against OpenAI, Anthropic, and SpaceX/xAI, which are reportedly considering a public debut.

TechCrunch has reached out to Cohere for comment.