CEO Aidan Gomez said the company is struggling to get the computing power needed to run its operations, challenging concerns that companies are over-investing in the AI infrastructure buildout. “From our perspective, there is a dearth of supply,” Gomez told Bloomberg. “We need much more compute. We need the energy, the facilities, the chips to support that.” (Bloomberg)

Talking point: Gomez’s comments—made from Tokyo, where he is working on expanding Cohere’s business—come amid growing concerns about debt-fuelled financing of AI infrastructure. On Tuesday, SoftBank announced a US$3.7-billion writedown tied to its U.S. data-centre projects, underscoring the financial risks of the buildout. Gomez added that Cohere itself has focused on raising equity rather than debt. Last month, it announced it is raising $7 billion at a $35.7-billion valuation in a round that includes up to $1.6 billion from the Canadian government. The company’s reliance on debt-backed infrastructure providers such as CoreWeave, however, leaves it exposed if tighter lending slows their expansion.

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