AI Startup Cohere Valued at $6.8 Billion With New Funding

Artificial intelligence startup Cohere Inc. has raised $500 million in a new round of funding, part of a bid to compete with larger tech firms in selling AI services to businesses and governments.

The financing, announced Thursday, was led by Radical Ventures and Inovia Capital, with participation from existing investors including Nvidia Corp. and AMD Ventures. The round values Cohere at $6.8 billion, up from $5.5 billion a year ago.

Founded in 2019, the Toronto-based company is focused on selling AI software to businesses rather than consumers. But Cohere faces growing competition from better-funded rivals such as OpenAI and Anthropic ...