Cohere's $240M year sets stage for IPO | TechCrunch

TechCrunch

by Rebecca Bellan

February 13, 2026

AI-Generated Deep Dive Summary

Cohere, a Canadian AI startup, has achieved a significant milestone by surpassing $240 million in annual recurring revenue (ARR) in 2025, reflecting strong demand for enterprise AI solutions. This growth is notable as Cohere competes with major players like OpenAI and Anthropic in the rapidly evolving AI landscape. The company’s success highlights its ability to meet enterprise needs efficiently, particularly through its Command family of generative AI models, which are designed to operate on limited GPU resources—making them attractive for businesses focused on cost management. Cohere was founded in 2019 and has garnered support from prominent investors including Nvidia, AMD, and Salesforce. The startup’s technology is centered around its Command AI models, which are optimized for performance on constrained hardware. This efficiency is a key differentiator in the competitive AI market, where enterprises are increasingly seeking scalable and cost-effective solutions. Additionally, Cohere launched North, an enterprise AI platform designed to facilitate secure, custom AI workflows and agents, further solidifying its position as a leader in enterprise AI. The company’s CEO, Aidan Gomez, hinted at a potential IPO “soon,” which could align with 2026. If realized, Cohere would join other major players like OpenAI, Anthropic, and SpaceX/xAI in the race to go public. This move underscores the growing importance of AI in driving innovation across industries and the increasing investor interest in companies that can deliver robust enterprise solutions. For tech enthusiasts and industry watchers, Cohere’s trajectory offers valuable insights into the future of AI adoption, particularly in the enterprise sector, where efficiency, scalability, and security are paramount.

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Originally published on TechCrunch on 2/13/2026