The Toronto-based AI firm is in advanced discussions with investors for a new funding round of US$2 billion to US$3 billion at a US$20-billion valuation, which could include financing from the Canadian and German governments, sources told The Globe and Mail. Cohere did not respond to a request for comment from The Logic. (The Globe and Mail, The Logic)

Talking point: Cohere already has a lead investor, Schwarz Digits, which committed US$600 million to the AI firm’s Series E round as part of the April deal that saw it merge with German competitor Aleph Alpha. The firm has raised US$1.6 billion to date, according to PitchBook data. That’s far less than AI frontier labs OpenAI and Anthropic, although Cohere’s founders have long argued it doesn’t need as much money because it’s focused on business users who often pay for their own AI infrastructure. Still, more direct rivals are also raising large sums. Paris-headquartered Mistral AI this week closed a €3-billion (US$3.5 billion) Series D round at a €21-billion-plus valuation.

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