Cohere Targets C$7 Billion in Funding Round at C$35.7 Billion Valuation
Key Facts
Cohere announced an initial close of a Series E funding round targeting up to C$7 billion at a stated valuation of C$35.7 billion, according to a company statement published on October 29, 2026. Describing the round as an initial close does not establish that the full target has been raised. Schwarz Group companies are leading the round, while the Canadian government is participating as a new investor. NVIDIA is returning as an investor, alongside Inovia Capital and Prosperity7 Ventures. Bell Ventures and Bullhound Capital are also among the new investors Cohere announced. [f1][f2]
Cohere’s chief financial officer said the funds will support model development and the product roadmap, as well as the creation of specialized AI solutions for regulated industries. The CFO added that the company plans to invest in long-term computing infrastructure needed to train advanced enterprise models. This puts the funding to work across two areas: product development and expanded computing capacity. In August 2025, the company announced it had raised US$500 million at a valuation of US$6.8 billion in a round led by Radical Ventures and Inovia Capital. It then announced a second close in September 2025, adding US$100 million to the previous round. [f7][T06][T07]
Cohere says its annual recurring revenue grew 165% year over year by the end of the third quarter of 2026. The company attributed the growth to winning new customers and expanding its business with existing customers in the commercial and public sectors. It also said its global customer base grew 20-fold over one year to reach 300 customers. The names it cited include Aston Martin Aramco, Bell Canada, Fujitsu, RBC, PwC, TD Bank and TKMS. These figures provide context for the business expansion the company announced alongside the funding round and are based on Cohere’s disclosure. [f5][f6]
The funding comes as Cohere announced an agreement to merge with Aleph Alpha in September 2026. The company said the deal remains subject to final regulatory approvals and is expected to close later this year. Under its announced plan, the combined company would have dual headquarters in Toronto and Berlin. It also plans to retain Aleph Alpha’s office in Heidelberg as a research center. The agreement puts the merger among the company’s upcoming developments as it seeks to complete the targeted funding round. [T08][T09][f1]