The Toronto-headquartered AI firm claims its annualized revenue—monthly sales extrapolated over a year—has reached US$150 million. Cohere’s margins are “really good,” CEO Aidan Gomez said, because customers run its models on their own hardware. He was speaking at a Bloomberg event in London. (The Logic)

Talking point: Cohere sells its AI models, agents and software to big business and government departments. The firm’s revenue growth has significantly accelerated this year, as it has landed major clients like Bell and LG CNS. Upstarts OpenAI and Anthropic and tech giants like Google and Meta are earning significantly more from AI. But unlike those firms, Gomez said, Cohere doesn’t have to bear the “huge” compute costs to serve consumers using AI applications for free. Meanwhile, the firm has launched a secondary offering, allowing employees to sell shares to investors.