Canadian AI Unicorn Cohere Completes First Close of Series E, Targeting Record CAD 7 Billion Raise and Announcing M&A Plans
Cohere announced the first close of its Series E round, targeting up to CAD 7 billion, which would set a Canadian startup record. The company plans to acquire AISLE and merge with Aleph Alpha to expand into enterprise security and European markets, backed by potential government investment.
Canadian large language model unicorn Cohere announced on October 29 that it has completed the first close of its Series E funding round. The round targets a maximum raise of CAD 7 billion (approximately RMB 33.4 billion). Cohere stated on its official X account that if the full fundraising target is reached, this transaction will become the largest single private funding round in Canadian startup history.
The round is led by German retail giant Schwarz Group, with continued participation from existing investors including Nvidia and Prosperity7 Ventures (a subsidiary of Saudi Aramco), as well as new investor the Government of Canada. Disclosed figures indicate that Cohere's valuation was approximately CAD 9.8 billion in September last year. If the current raise reaches its target, the company's valuation is expected to hit CAD 35.7 billion, representing a 3.6-fold increase within one year.
Beyond capital injection, Cohere unveiled strategic moves aimed at expanding its business boundaries. The company plans to advance two AI company acquisitions within a year: signing a letter of intent to acquire US-based AI cybersecurity startup AISLE to launch Cohere Cyber, an enterprise security product for automated vulnerability discovery and repair; and signing a merger agreement with German AI company Aleph Alpha to integrate model development capabilities and access European government and enterprise clients. Both transactions are currently pending completion.
Additionally, according to an agreement published by the Office of the Prime Minister of Canada on October 29, the Canadian government intends to invest up to CAD 1.6 billion (approximately RMB 7.6 billion) in Cohere in phases. As conditions for this investment, Cohere has committed to creating at least 1,000 technical jobs in Canada by 2030, investing at least CAD 1.7 billion in local computing infrastructure, and retaining its headquarters and registration in Canada.