Cohere ARR Hits $100M

Cohere, the Toronto-founded AI startup specializing in enterprise-grade large language models, has doubled its annual recurring revenue to $100 million as of mid-2025, building on a strategic pivot toward secure, customized AI deployments for sectors such as finance, healthcare, and government.

This growth reflects a significant upswing from earlier milestones—including $35 million in ARR by March 2024—and positions the company on track to potentially double ARR again by year-end.

The core of Cohere’s offering lies in its AI models trained on clients’ proprietary data and deployable in private, on-prem environments to meet stringent regulatory, compliance, and privacy requirements.

Its flagship product, North, launched in January 2025, is a ChatGPT-style AI agent for enterprises—providing capabilities like summarizing documents and automating tasks—which is currently being piloted with partners such as Royal Bank of Canada, LG, Fujitsu, Oracle, and Dell.

On the company trajectory, Cohere recently raised $500 million in funding, elevating its valuation to approximately $6.8 billion, and bringing in high-profile hires like former Meta AI head Joelle Pineau as Chief AI Officer and an ex-Uber executive as CFO.

The company’s capital raise and rapid ARR expansion underscore growing investor confidence in its enterprise-first, margin-focused strategy.