Cohere, a notable startup in competition with OpenAI, has been reported to have an annual revenue of approximately $13MM in annual recurring revenue (ARR). This revelation comes amidst the company's prolonged efforts to secure additional funding. Despite the modest revenue, Cohere had been seeking a valuation of $6 billion last year, which translates to a 450x multiple of its ARR. The company, which has previously raised $445M, faces challenges in the AI development sector, highlighting the broader issue of revenue generation among AI startups compared to their initial hype and fundraising achievements.
Sources: Cohere, which has raised $445M and was seeking new funding at a $6B valuation last year, generated just ~$13M in annualized revenue at the end of 2023 (The Information) https://t.co/TPgEOICCfl 📫 Subscribe: https://t.co/OyWeKSRpIM https://t.co/dptVVdcoBw
Exclusive: Tepid revenue at AI developer Cohere shows how OpenAI competitors face an uphill climb. https://t.co/bT2cpmbQk0 From @steph_palazzolo and @heetermaria.
Tepid revenue at AI developer Cohere shows how OpenAI competitors face an uphill climb. https://t.co/bT2cpmbQk0 By @steph_palazzolo & @heetermaria
Exclusive: Tepid revenue at AI developer Cohere shows how OpenAI competitors face an uphill climb. https://t.co/bT2cpmbQk0 From @steph_palazzolo and @heetermaria.
The revenue of AI startups has yet to catch up with their hype. Just take Cohere: Despite generating just $13MM in ARR, the OpenAI rival wanted a $6Bn valuation—a whopping 450x multiple. @HeeterMaria and I have the inside details here: https://t.co/8xbz4NqYKy
Scoop: Cohere, one of the best-known startup competitors to OpenAI, has just 13Mn in annual revenue. Perhaps why its funding round has stretched on for so long ….. Details here 👇 w/ @steph_palazzolo https://t.co/xjMpKqZcwu
Generative AI founders can raise money. But can they make money? Well... Cohere shows broader ai startup revenue struggles. https://t.co/GOBpjkGejz by @steph_palazzolo @HeeterMaria https://t.co/e8gROIojpc