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Nvidia-Backed Cohere to Invest in Mega Data Center in Canada
Artificial intelligence startup Cohere Inc. is partnering with CoreWeave Inc. to build a multibillion-dollar data center in Canada, with financial help from the Canadian government. The company, headquartered in Toronto and San Francisco, is among the largest startups in Canada with a valuation of over $5.5 billion and about 400 employees.
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Nvidia-Backed Cohere to Invest in Mega Data Center in Canada
(Bloomberg) -- Artificial intelligence startup Cohere Inc. is partnering with CoreWeave Inc. to build a multibillion-dollar data center in Canada, with financial help from the Canadian government. The company, headquartered in Toronto and San Francisco, is among the largest startups in Canada with a valuation of over $5.5 billion and about 400 employees. The location of the new AI data center, to be built by CoreWeave, has yet to be officially determined. No financial details were released. Cohere is expected to provide a significant investment in the project as it seeks to train its models and secure computing power in Canada. The site will also provide enough capacity for other players. The government will support Cohere for as much as C$240 million ($170 million) as part of its C$2 billion Canadian Sovereign AI Compute Strategy. "Canadian champions drawing in billions of dollars in investment to build infrastructure is a home run when it comes to putting policy in action," Francois-Philippe Champagne, Canada's innovation minister, said in a statement. Cohere, founded in 2019 by Aidan Gomez, Nick Frosst and Ivan Zhang, has raised $970 million from a pool of investors that includes Nvidia Corp., Oracle Corp., Cisco Systems Inc., Public Sector Pension Investment Board and Montreal-based investment firm Inovia Capital. Its technology started by using large language models to generate text from prompts, but customized for businesses. In a letter to employees and investors Thursday, Gomez said the firm is now seeking to build more tailored and secured models as companies struggle to find ways to use generative AI. At the end of March, Cohere was generating $35 million in annualized revenue, up from $13 million at the end of 2023, according to a person familiar with the matter.
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Cohere Inc., an AI startup backed by Nvidia, partners with CoreWeave to construct a massive data center in Canada. The project receives significant financial support from the Canadian government as part of its AI strategy.
Artificial intelligence startup Cohere Inc. has revealed plans to partner with CoreWeave Inc. in constructing a multibillion-dollar data center in Canada. This significant development comes with substantial financial backing from the Canadian government, marking a major step in the country's AI infrastructure expansion 12.
While the exact location of the new AI data center remains undisclosed, the project is set to receive considerable support from the Canadian government. As part of its C$2 billion Canadian Sovereign AI Compute Strategy, the government has pledged up to C$240 million ($170 million) in support for Cohere 2.
Francois-Philippe Champagne, Canada's innovation minister, expressed enthusiasm for the project, stating, "Canadian champions drawing in billions of dollars in investment to build infrastructure is a home run when it comes to putting policy in action" 2.
Cohere is expected to make a significant investment in the project, aiming to enhance its model training capabilities and secure computing power within Canada. The data center will not only serve Cohere's needs but also provide capacity for other players in the AI industry 2.
Founded in 2019 by Aidan Gomez, Nick Frosst, and Ivan Zhang, Cohere has quickly become one of Canada's largest startups. With dual headquarters in Toronto and San Francisco, the company boasts a valuation exceeding $5.5 billion and employs approximately 400 people 12.
Cohere has raised an impressive $970 million from a diverse group of investors, including tech giants like Nvidia Corp., Oracle Corp., and Cisco Systems Inc., as well as the Public Sector Pension Investment Board and Montreal-based investment firm Inovia Capital 2.
Initially focused on using large language models to generate text from prompts for businesses, Cohere is now shifting its strategy. In a recent letter to employees and investors, CEO Aidan Gomez outlined the company's plans to develop more tailored and secure models, addressing the challenges businesses face in implementing generative AI 2.
The company has demonstrated strong revenue growth, with annualized revenue reaching $35 million by the end of March, a significant increase from $13 million at the end of 2023 2.
This project represents a major boost for Canada's AI ecosystem and its ambitions to become a global leader in artificial intelligence. By attracting substantial investments and fostering partnerships between innovative startups and established tech companies, Canada is positioning itself at the forefront of AI research and development.
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