Tiger Global, one of the leading technology investors, is close to selling a part of its stake in OpenAI-rival Cohere, The Information reported on Wednesday. The investor is reportedly selling 2.1 percent stake in the company for $63 million which gives Cohere the valuation of $3 billion.
This represents a remarkable 43 percent surge in valuation for the Canadian AI startup within a mere three months. In June, Cohere secured a funding round of $270 million, reportedly valuing the company at $2.1 billion. The round that included investments from Nvidia, Oracle, and Salesforce made the company one of world’s most highly valued AI startups.
Tiger Global had led Cohere’s $125 million Series B in early 2022. The investment firm is set to retain 5 percent stake in the firm after the sale of a part of its stake. According to The Information, Tiger is expected to sell each share of Cohere for $130 to $140. In its last funding round, it was priced at $95.
Founded in 2019 by former Google Brain team members Aidan Gomez and Nick Frosst, along with Ivan Zhang, Cohere focuses on developing Large Language Models (LLMs) that can understand and generate human-like text. The company competes with the likes of OpenAI and Anthropic, with a particular focus on serving enterprises.
Less than a month ago, the company launched Cohere, an AI assistant designed for enterprises that can answer questions using both company data and external sources, aiming to enhance employee productivity, improve customer experiences, and facilitate business analysis. The assistant uses company’s latest Command model.