Cohere is an artificial intelligence startup founded by formerGoogle Artificial Intelligence researchers and get support NvidiaAbout 20 positions were cut on Tuesday, CNBC confirmed.
Cohere has about 400 employees, and the layoffs follow the completion of a $500 million funding round from investors including: AMDSalesforce, Oracle and Nvidia value the company at $5.5 billion, more than double last year’s valuation.
Despite the layoffs, Cohere is still hiring in areas such as customer operations, partnerships, revenue, sales, product design and modeling, according to its website.
Founded by former Google artificial intelligence researchers and backed by Nvidia, Cohere’s business model centers on generative artificial intelligence for enterprises rather than consumer chatbots, which has grown since OpenAI released ChatGPT in late 2022. Chatbots have been a hot topic in the tech industry. sales force and Oracle Participate in this round of financing. Company executives also participated in the White House artificial intelligence forum.
“With this latest round of funding in place, we have a clear vision for Cohere’s future, which will require some internal adjustments,” a representative for the company told CNBC in a statement. “We will continue to aggressively recruit talent. , striving to provide enterprises with the most accurate, secure and private multilingual artificial intelligence solutions on the market.”
wealth News of the layoffs was first reported.
According to PitchBook data, the field of generative AI has exploded in the past year, with investment in nearly 700 deals reaching a record $29.1 billion in 2023, and deal value increasing by more than 260% from the previous year. It has become the hottest phrase on every quarter’s corporate earnings calls, and some form of technology is automating tasks in nearly every industry, from financial services and biomedical research to logistics, online travel and utilities.
Some of Cohere’s competitors in the artificial intelligence arms race offer products for consumers and businesses. For example, OpenAI launched ChatGPT Enterprise last August, and Anthropic opened its Claude chatbot, previously only for commercial use, to consumers in July last year.
Martin Kon, Cohere’s president and chief operating officer, told CNBC in March that by continuing to focus on enterprise artificial intelligence, the company was able to operate efficiently and sustainably even amid chip shortages, rising graphics processing unit (GPU) costs and growing… Control costs.
Current customers include Notion, Oracle and Bamboo HR, according to Cohere’s website. Kon has told CNBC in the past that many clients include businesses in the banking, financial services and insurance industries. In November, Cohere told CNBC that customer interest increased after OpenAI suddenly and temporarily fired CEO Sam Altman.
In March, Kon acknowledged the ongoing challenges posed by the changing dynamics of the hardware industry. Kon said at the time that the company had been stockpiling Google chips for more than two years, acquired during Cohere’s early days, to help it pre-train models. Now Cohere is moving to using more of Nvidia’s H100 GPUs, which power most of the latest large language models.
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