Aidan Gomez, chief executive officer of Cohere Inc., at the Bloomberg Tech summit in London, UK, on Tuesday, Oct. 21, 2025.
Artificial intelligence startup Cohere has told investors that it's seeing momentum with enterprise customers, even as rivals like Google , Anthropic and OpenAI claw for market share.
Cohere hit roughly $240 million in annual recurring revenue last year, surpassing its $200 million target, according to a February investor memo viewed by CNBC. It saw quarter-over-quarter growth of more than 50% throughout 2025, the memo said.
"Our thesis is clearly resonating in the market," the company wrote. "Our sales pipeline continues to grow as global organizations across regulated sectors choose Cohere as their trusted partner for secure AI adoption at scale."
Founded in Toronto in 2019, Cohere develops models and builds software tools for businesses. The company is backed by investors including Nvidia and Salesforce Ventures , and its valuation has swelled to roughly $7 billion.
Cohere's investor memo comes after CEO Aidan Gomez said in October that the startup hopes to make its public market debut "soon." He told Bloomberg that he thinks investors would welcome a "pure play AI investment opportunity."
But Cohere's competitors OpenAI and Anthropic are also weighing potential IPOs, according to people familiar with the companies' thinking. And they have not been shy about their ambitions to win in the enterprise market.