Cohere, a leading AI startup, has made waves in 2025 by doubling its annualized revenue to $100 million since the start of the year.
This impressive growth comes from a sharp focus on enterprise clients who need secure and customized AI tools, especially in industries like finance, healthcare, and government.
Why Enterprises Choose Cohere?
The company shifted its strategy in the third quarter of 2024, moving away from large, general AI models to smaller, specialized ones tailored for specific business needs.
According to Cohere’s Chief Executive Aidan Gomez, this move prioritizes private deployments, which now make up 85% of the company’s business with profit margins as high as 80%. These long-term contracts ensure steady revenue while meeting strict security and compliance demands.
Innovative Tools for Knowledge Workers
As part of its enterprise push, Cohere launched North, a ChatGPT-like app in January 2025. Designed to help with tasks like summarizing documents, North is currently being tested by major clients like Royal Bank of Canada and LG. This tool aims to boost productivity for knowledge workers by automating routine tasks.
Security and Customization at the Core
Cohere offers multiple deployment options, including SaaS, cloud platforms like AWS and Azure, virtual private clouds, and even on-premises setups for maximum data security.
This flexibility ensures sensitive data stays protected, a key concern for regulated sectors. Enterprises can also fine-tune models with their own data for better accuracy and relevance.
A Growing Trend in AI
Cohere’s focus on domain-specific AI mirrors a wider industry shift. Companies find that smaller, customized models deliver better results than massive, generalized systems.
With over $900 million raised from investors like Nvidia and Cisco, and a valuation of $5.5 billion, Cohere is well-positioned to lead this change.
Details regarding North’s pricing and general availability have not yet been released.