Cohere revenue surge fuels IPO speculation
Canada’s AI company Cohere is drawing fresh attention after reporting a sharp rise in enterprise revenue, a milestone that is now intensifying questions about whether the firm could pursue a public listing in 2026.
According to an investor memo and industry reports, the Toronto-based startup closed 2025 with $240 million in annual recurring revenue (ARR), surpassing its internal target of $200 million. The company’s growth rate was also notable, exceeding 50% quarter-over-quarter throughout the year—an uncommon level of sustained expansion in a market often dominated by research announcements and product launches rather than durable revenue.
Efficiency-first strategy and enterprise backing
Founded in 2019 by Aidan Gomez, Ivan Zhang, and Nick Frosst, Cohere has positioned itself as an enterprise-focused alternative to consumer-facing AI leaders. The company has attracted backing from major technology players including Nvidia, AMD, and Salesforce, reinforcing its strategy of embedding AI into corporate infrastructure.
Central to that pitch is the company’s Command family of generative models, which Cohere markets as efficient—designed to deliver strong performance without the same level of GPU intensity associated with some rivals. As enterprises contend with rising infrastructure costs and constrained access to chips, efficiency is increasingly becoming a competitive differentiator.
Moving up the stack with North
Last summer, Cohere expanded beyond model access with the launch of North, an enterprise platform aimed at secure, customized AI agents and workflow automation. The product is intended to help companies deploy AI within controlled environments that align with compliance requirements and internal data systems—positioning Cohere as a broader enterprise AI partner.
Is a 2026 IPO next?
CEO Aidan Gomez said in October that an IPO could come “soon,” prompting market watchers to consider 2026 as a plausible window. If it proceeds, Cohere could join a cohort of high-profile AI companies reportedly exploring public-market paths. For investors, the key test will be whether the company is valued as durable enterprise infrastructure rather than a short-term AI beneficiary.
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