The Toronto-headquartered AI firm’s annual recurring revenue last year topped its US$200 million target, according to a memo obtained by CNBC. According to the document, sales grew more than 50 per cent quarter over quarter, and the firm had a 70 per cent average gross margin. Cohere declined to comment to The Logic. (CNBC, The Logic)

Talking point: Cohere sells AI models and agent-builder tools, mostly to large companies in regulated industries, and increasingly to government departments. Those sales are picking up. The firm has more than doubled its business since last May, when it reportedly crossed the US$100 million annualized revenue—typically a measure of monthly sales projected over a year-long period. That’s still slower growth and a lower total than other developers that sell models and tools to the enterprise market, like Mistral or Anthropic. But Cohere CEO Aidan Gomez has argued his company has a more sustainable business model because it doesn’t have a consumer-facing app and its commercial clients pay for the compute costs of running its technology.