The Usual Suspects?

→ Canada wants in.
→  Germany wants in.
→ The company behind Lidl and Kaufland has already committed hundreds of millions.

And Nvidia?

It was there before most of them.

The company bringing this rather unusual group together is Cohere, a Toronto-based AI firm.

Cohere is reportedly in talks to raise as much as $3 billion at a $20 billion valuation — nearly 3x the roughly $7 billion valuation it reached last year.

That’s a lot of money chasing a company with a fraction of the name recognition of AI’s biggest players.

Which raises a pretty obvious question:

What exactly does everyone see in Cohere?

Because once you look at what the company is building — and who it’s building it for — Nvidia’s early interest starts to make a lot more sense.

And it tells us something interesting about where Jensen Huang thinks the next wave of AI spending may come from.

Let’s see.⇩

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Zero to $20 Billion!

→ Aug. 2025 – $6.8B — $500M raised
→ Sept. 2025 – $7B — another $100M raised
→ Now – $20B — $2B to $3B raise in talks

Source: PYMNTS, Globe and Mail · 2025–2026

That’s quite the repricing.

In barely a year, Cohere could go from a $6.8 billion valuation to $20 billion — nearly 3x.

And if the current round closes at the reported terms, it would become the largest funding round ever for a private Canadian startup.

Two sources told The Globe and Mail the deal could close as soon as next week, although the timing and terms aren’t final.

Apparently, $7 billion didn’t last long.↓

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AI That Stays Put.

Cohere has picked a very specific corner of the AI market.

→ Instead of chasing consumers with another chatbot, it sells AI to organizations where data leaving the building can be a problem.

… banks. Governments. Healthcare.

Its platform, North, can be deployed inside a company’s own infrastructure, allowing employees to use AI agents while keeping sensitive information under the organization’s control.

The industry has a name for this: sovereign AI.

And Cohere has already found some pretty serious customers.

→ Royal Bank of Canada.
→ Oracle.
→ Bell Canada.

That customer list also gives us our first clue as to why Nvidia might be interested.

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Then The Revenue Took Off.

The valuation isn’t climbing on hype alone.

Cohere’s annual recurring revenue went from roughly $62 million to $240 million in about a year.↓

That’s nearly 4x.

And apparently, much of the growth came late.

Cohere was reportedly at roughly $100 million in ARR just six months before reaching $240 million.

So the interesting part isn’t simply that Cohere is growing.

It appears to be speeding up.

Who’s Actually Writing the Checks…

1  🇨🇦 Canada
Ottawa committed up to C$240 million to help Cohere expand its AI computing capacity under Canada’s Sovereign AI Compute Strategy.

2  🇩🇪 Germany
The German government is reportedly in talks to participate in Cohere’s latest financing, following the company’s combination with German AI firm Aleph Alpha.

3 The company behind Lidl
Germany’s Schwarz Group, which owns Lidl and Kaufland, committed roughly $600 million earlier this year. Its technology arm, Schwarz Digits, also operates data centers and cloud infrastructure.

4 And Nvidia was already there.
Nvidia has backed Cohere for years, alongside investors including Radical Ventures, Inovia Capital, PSP Investments and the Business Development Bank of Canada.

✱ Jensen Huang has spent years encouraging countries to build their own sovereign AI capabilities.

Cohere is building for exactly that world.

Its models can be deployed privately, and the company has worked closely with Nvidia to optimize them for Nvidia hardware.

Which creates a rather nice setup for Nvidia.

→ If Cohere becomes more valuable, Nvidia owns a piece of it.
→ If Cohere helps more governments and companies build AI infrastructure, that can create more demand for the computing hardware Nvidia sells.

So Nvidia is investing in companies that could help make the AI market itself bigger.

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