Nvidia Invests in Cohere, an AI Firm Focused on Sovereign Solutions
Nvidia (NVDA) has invested in Toronto-based artificial intelligence firm Cohere, which is preparing to raise up to $3 billion. The funding round could value the company at $20 billion—nearly triple its valuation from a year ago—and would be the largest for any private Canadian startup if completed. Cohere specializes in 'sovereign AI' solutions designed for institutions like banks, governments, and hospitals that prefer to keep data on-premises. The firm has secured deals with major clients such as Royal Bank of Canada, Oracle (ORCL), and Bell Canada through its platform called North. Cohere's annual recurring revenue surged nearly fourfold in 2025 compared to the previous year. Nvidia’s investment aligns with CEO Jensen Huang’s broader strategy encouraging governments not to outsource AI development but instead build their own capabilities using Nvidia hardware. This move mirrors similar investments by Nvidia into other firms like Nebius and CoreWeave, reinforcing its influence in shaping demand for its chips.
Topics: AI Cohere Nvidia private equity investment startup funding