Skip to content

Canada's Business and Tech Newsroom

  • Professional Subscription
  • Partnerships & Advertising
  • Licensing & Syndication
Log In Subscribe
Welcome,
  • My Account
  • Log Out
  • Business
  • Tech
  • National
  • The Big Read
  • Briefings
  • Commentary
Search
Log In Subscribe
Welcome,
  • My Account
  • Log Out
News

Cohere says the future of AI is smaller, not bigger

TORONTO — Cohere plans to launch a new suite of workplace AI assistants and customize smaller models for clients, as the startup looks to capture market share against larger competitors.

News

Cohere says the future of AI is smaller, not bigger

As OpenAI and Google struggle to make LLMs better, Toronto-based Cohere says it will focus on building more efficient models for businesses

By Murad Hemmadi and Aimée Look
Cohere CEO Aidan Gomez sitting and speaking on stage, with a microphone attached to his ear. Background features illuminated panels and a large sign reading "COLLISION.”
Cohere CEO Aidan Gomez at the Collision conference in Toronto, in June 2024. Photo: Christopher Katsarov Luna for The Logic
Dec 5, 2024
A A
A Small A Medium A Large
Share

Gift

Share

TORONTO — Cohere plans to launch a new suite of workplace AI assistants and customize smaller models for clients, as the startup looks to capture market share against larger competitors.

In a letter sent to staff and shareholders, CEO Aiden Gomez said the Toronto-based firm is developing a new line of products that clients can install more easily. 

The firm will offer the tools to launch AI assistants that workers can use to search for information, write documents and answer questions, Gomez said. The automated helpers will plug into clients’ existing data and business systems like customer relationship management tools. Eventually, Cohere plans to offer agents, which can go out and do tasks for their users, like booking appointments or resolving customer service complaints.

A number of technology companies already sell agents, based on large language models (LLMs) from companies like OpenAI, Anthropic and Cohere. But some generative AI startups have themselves launched such assistants, as they look for more ways to generate revenue. 

At The Logic Summit in October, Cohere co-founder Nick Frosst signalled the firm was prepared to go beyond its core models. “We’ve created LLMs,” he said. “We’ve also created a variety of tools for making use of those LLMs.” When customers face challenges building atop the generative tools, “you can definitely expect us to try to make that easier for them.”

Related Articles

Cohere co-founder Nick Frosst, Sagard head of AI Parinaz Sobhani, and The Logic reporter Murad Hemmadi seated on chairs having a panel discussion. The stage has blue and white circular designs with floral arrangements in the foreground.

Cohere’s Nick Frosst says it’s time to stop chasing artificial general intelligence

By Anita Balakrishnan
A person holding up a cell phone displaying Cohere’s logo on it. In the background is McKinsey & Company’s blurred-out logo.

Cohere taps consulting giants McKinsey, Accenture to help push generative AI products

By Murad Hemmadi

In his letter, Gomez also claimed Cohere is avoiding a growing challenge its competitors are facing with improving their models. OpenAI, Anthropic and Google have reportedly seen the rate at which its foundation models get better slow down, as developers hit the limits of gains provided by adding more data and processing power. 

Instead of “simply buying more supercompute,” Cohere has instead focused on training with better-quality data, and synthetically-generated information, Gomez said. “Our strategy has allowed us to be an order of magnitude more capital efficient than our competition.” The startup has raised US$940 million to date, according to PitchBook data, compared to OpenAI’s US$29.9 billion and Anthropic’s US$12.8 billion.  

Cohere has zeroed in on selling its models for businesses, using their most “sensitive and valuable data assets,” Gomez said. He touted Cohere’s ability to differentiate itself on trust as a “technology partner” rather than supplier.

An “off-the-shelf consumer AI chatbot” isn’t enough, Gomez wrote in the letter, adding that customization is highly sought after by corporations. 

The AI company has already bolstered access to its products through partnerships with cloud providers like Amazon Web Services, Microsoft, Google and Oracle. It also works with consulting giants McKinsey and Accenture. 

Cohere’s work with individual companies is already “demonstrating a major avenue of growth” for the company, Gomez wrote. It has teamed up with Texas-based software giant Oracle to build custom AI models and power dozens of features across Oracle’s apps, Gomez wrote. Cohere’s partnership with Japanese information technology company Fujitsu has produced a multilingual model Takane, which specializes in Japanese.

The company plans to announce further partnerships in the coming weeks and says it will offer companies “AI capabilities that a generic consumer chatbot never could,” Gomez wrote.

Gift the full article

Cohere is eyeing companies that will help them create models beyond English, co-founder Nick Frosst said in an interview with The Logic in November. Most LLMs have been focused on English so far, he added. 

“We’re very interested in making models good at all languages,” Frosst said. “The partnership model that we had with other companies has worked really well. We’d be interested in supporting other companies to do the same.”

#artificial intelligence #Cohere #markets #Tech

Sponsored Content

The road to risk-smart regulation

By Deborah Aarts

Why cybersecurity needs to match pace with AI

By Jessica Aftimus Rosa

How to shift your workforce from AI experimentation to adoption

By Jessica Aftimus Rosa
Paid promotional content

Loading...

Thanks for sharing!

You have shared 5 articles this month and reached the maximum amount of shares available.

Close
This account has reached its share limit.

If you would like to purchase a sharing license please contact The Logic support at [email protected].

Close
Want to share this article?

Upgrade to all-access now

Close
Gift the full article!

You have gifted 0 article(s) this month and have 5 remaining.

Copy link and gift
Copy Link
Email to a friend
Send Email
Gift on Social Media

Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.

Cohere CEO Aidan Gomez sitting and speaking on stage, with a microphone attached to his ear. Background features illuminated panels and a large sign reading "COLLISION.”

Photo: Christopher Katsarov Luna for The Logic

Most Popular This Week

A side shot of Annie Andrews passing a cluster of supporters with a hand outstretched and a joyful look on her face.
News

What the Democrats’ midterm sweep means for Canadian business

By Joanna Smith
An image of Prime Minister Mark Carney, standing in front of a microphone and speaking. He is wearing a blue suit and tie, while looking away from the camera. He is standing in front of a dark background. The Cohere logo is visible in the background.
News

Conservatives challenge Ottawa to justify its $1.6B Cohere investment

By Catherine McIntyre
U.S. President Donald Trump and Canadian Prime Minister Mark Carney in suits, sitting and talking in the Oval Office with gold decor.
News

Canadians have given up on the old America. They feel fine about it

By David Reevely
A logo that reads AI in blue lettering against a light yellow background.
News

BDC launches programs to test Canadian AI tools in small businesses

By Catherine McIntyre

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

A new condo construction site is seen in downtown Toronto on Thursday, May 25, 2023.
News

Big banks and developers urge Ottawa to halt private capital’s retreat from housing

By Chaimae Chouiekh

Briefing

Ex-Cohere engineers and Blue J executive raise US$6M to launch new firm

By Anita Balakrishnan   |   Nov 10, 2026 | 3:27 PM ET

CN confirms work with Strathcona on northern B.C. crude-by-rail project

By Meghan Potkins   |   Nov 10, 2026 | 3:10 PM ET

Canada and Cohere sign AI safety pledge with Anthropic, OpenAI and other industry giants

By Catherine McIntyre   |   Nov 10, 2026 | 3:03 PM ET

Best business newsletter in Canada

Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.

Exclusive events

See the bigger picture with reporters and industry experts in subscriber-exclusive events.

Membership in The Logic Council

Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.

Recent Popular Stories

News

Wealthsimple launches AI assistant as Canada’s big banks block third-party agents

By Chaimae Chouiekh   |   Nov 5, 2026
News

Former Ciena employee claims she was fired for reporting sexual assault by executive

By Catherine McIntyre   |   Nov 3, 2026
An exterior of a five-storey office building with two Canadian flags out front. Above the entrance is a four-storey window with Ciena's logotype written sideways.
Commentary

Carmichael: Carney and Champagne’s budget sends the bond market a message

By Kevin Carmichael   |   Nov 5, 2026
An image of Mark Carney against a light and dark background.
News

Ottawa extends open banking principles to other sectors—but continues to delay original framework

By Claire Brownell   |   Nov 5, 2026
News

Canada is buying military gear for a world where ‘pretty much everything’ changed

By David Reevely   |   Nov 2, 2026
Three people, wearing business clothing and red poppy pins, sit on chairs on a stage. The person in the middle is speaking. A blue background is visible behind them.
News

Conservatives challenge Ottawa to justify its $1.6B Cohere investment

By Catherine McIntyre   |   Nov 2, 2026
An image of Prime Minister Mark Carney, standing in front of a microphone and speaking. He is wearing a blue suit and tie, while looking away from the camera. He is standing in front of a dark background. The Cohere logo is visible in the background.

Canada's most influential executives and policymakers are reading The Logic

  • CPP Investments
  • Sun Life Financial
  • C100
  • Amazon
  • Telus
  • Mastercard
  • bdc
  • Shopify
  • Rogers
  • RBC
  • General Motors
  • MaRS
  • Government of Canada
  • Uber
  • Loblaw Companies Limited
logic-logo

Canada's Business and Tech Newsroom

100% human-crafted journalism

Newsroom

  • News Tips
  • AI Policy
  • Editorial Disclosures
  • Story Pitches

Company

  • About Us
  • Terms of Service
  • Privacy Statement
  • Corporate Information

Contact

  • Contact Us
  • Advertise
  • FAQs
  • Work at The Logic

© 2026 The Logic Inc. All Rights Reserved.

Trusted by leaders

Error

Account creation failed.

Please email us at [email protected].

Create Account

[wppb-register form_name=”cozmo-registration-form-for-modal”]

I do have an account
Login
or

[wppb-login]

I don’t have an account