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

How to shift your workforce from AI experimentation to adoption

By Jessica Aftimus Rosa

The real-world economic offshoots of sovereign AI

By Deborah Aarts
Illustration of a plane flying above a mailbox

Increasing healthcare access across Canada

By Deborah Aarts
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

News

Canada-U.K. digital trade is set to grow under new phase of Pacific Rim trade pact

By Joanna Smith
Christian Weedbrook stands in a vacant warehouse next to a Canadian flag at a podium labelled for the Strategic Response Fund.
News

Xanadu gets $195M from federal government to build a quantum computer factory in Toronto

By Murad Hemmadi
A ground-level shot of a tractor pulling a potato harvester that drops the potatoes into a truck driving alongside it.
Analysis

Canada’s counter-tariffs would hit the Prairies hard, trade data shows

By Joanna Smith
People stand in large room split into several aisles by banners promoting startups. A video screen on the back wall has the logo for the CDL Super Session on it.
News

The Creative Destruction Lab is using data to reveal what makes startups successful

By Murad Hemmadi

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

A shot across an expanse of low forest of a rocket launching into blue skies.
News

People hired to promote Canadian rocket firm didn’t actually help, company alleges in lawsuit defence

By David Reevely

Briefing

New 100% U.S. tariffs on drones take effect, hitting Canadian industry

By David Reevely   |   Sep 3, 2026

Solomon says Canada will stick with its own AI rules after U.S., tech giants push G20 not to regulate

By Murad Hemmadi   |   Sep 3, 2026

Ottawa defence supplier Allen-Vanguard put into receivership

By David Reevely   |   Sep 3, 2026

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

Xanadu gets $195M from federal government to build a quantum computer factory in Toronto

By Murad Hemmadi   |   Aug 28, 2026
Christian Weedbrook stands in a vacant warehouse next to a Canadian flag at a podium labelled for the Strategic Response Fund.
News

Canadian investors are dumping U.S. government debt for American corporate bonds

By Chaimae Chouiekh   |   Aug 24, 2026
An image of tall buildings against a cloudy blue sky.
News

The Creative Destruction Lab is using data to reveal what makes startups successful

By Murad Hemmadi   |   Aug 27, 2026
People stand in large room split into several aisles by banners promoting startups. A video screen on the back wall has the logo for the CDL Super Session on it.
News

Canadian universities are still struggling to commercialize their research, new data shows

By Catherine McIntyre   |   Aug 25, 2026
Exterior of a University of Toronto building
Analysis

Canada’s counter-tariffs would hit the Prairies hard, trade data shows

By Joanna Smith   |   Aug 28, 2026
A ground-level shot of a tractor pulling a potato harvester that drops the potatoes into a truck driving alongside it.
News

Canada-U.K. digital trade is set to grow under new phase of Pacific Rim trade pact

By Joanna Smith   |   Sep 1, 2026

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