According to the Financial Intelligence APP, Cohere, a Canadian startup in the field of artificial intelligence, has become one of the most valuable artificial intelligence companies in the world after completing a new round of financing, with a valuation of $5.5 billion.

Cohere said: "We are thrilled to announce the completion of our series D financing, which will help us expand our team and take our cutting-edge enterprise AI technology to new heights, significantly improving global productivity and efficiency."

In the recent round of financing, Cohere successfully raised $500 million. According to reports, the financing was led by PSP Investments, a Canadian pension investment management company. New investors, including Cisco (CSCO.US), Fujitsu of Japan, AMD's venture capital department AMD Ventures, and the Export Development Canada (EDC), also joined in the support.

Cohere, based in Toronto, Canada, was founded in 2019. Its main business is developing and customizing large language models for clients. Enterprises can use Cohere's large language models to extract the main points of customer emails or help write website content. It is worth noting that Cohere has explicitly stated that it will not provide consumer products.

Cohere's co-founder and CEO, Aidan Gomez, previously worked for Google under Alphabet (GOOGL.US). His 2017 co-authored paper "Attention is All You Need" is considered a milestone in the field of artificial intelligence research, driving innovation in the way computers analyze and generate text.

Just last month, Nvidia (NVDA.US) and Salesforce (CRM.US) participated in Cohere's financing, pushing the company's valuation to $5 billion, a significant increase from $2.2 billion in June 2023.

The new round of financing is expected to increase Cohere's total cash reserves to about $970 million. Cohere's products have attracted interest from hundreds of customers, including Notion Labs and Oracle (ORCL.US). Of particular note, Oracle is not only an investor in Cohere, but also uses Cohere's technology to write website copy, communicate with users, and integrate generative artificial intelligence into its own products. Cohere's customer base covers multiple industries, including banks, technology companies, and retailers.

In the fiercely competitive AI field, Cohere's competitors include OpenAI, supported by Microsoft, Anthropic, Mistral, and Google (GOOGL.US) under Alphabet. Microsoft has established a partnership with Mistral, while Anthropic has received funding from Amazon (AMZN.US), Google, and Salesforce.

This spring, Cohere launched its most powerful new model to date, Command R+. The company states that it intends to compete with OpenAI and others while also striving to reduce costs and provide customers with more efficient and cost-effective AI solutions.

As AI technology continues to advance and application areas expand, competition between Cohere and its competitors will become even more intense. The market will closely watch how these companies promote the development of the entire industry through technological innovation and strategic cooperation.