Canadian AI startup Cohere is in advanced talks to raise between $2 billion and $3 billion at a $20 billion valuation, The Globe and Mail reported Friday, citing four people familiar with the matter.
The Canadian government and some existing investors could take part, according to the report. If completed, it would be the biggest funding round for a private Canadian startup and nearly triple Cohere's valuation from around $7 billion last September.
The round could close as early as next week, though it may take longer. The deal is not final and the terms could still change.
The talks come as Cohere CEO Aidan Gomez is due to speak at several events in Canada next week, including the Canada Investment Summit and Milken Institute Global Dialogues in Toronto, and the All In AI event in Montreal.
Cohere focuses on businesses and governments
Cohere calls itself a "sovereign AI" provider, giving companies and governments an option beyond large U.S. tech firms. Customers can run its AI models on their own servers or cloud systems, giving them more control over sensitive data.
Gomez founded Cohere in Toronto in 2019 with Nick Frosst and Ivan Zhang. Its customers include Royal Bank of Canada and Japanese technology company Fujitsu.
Cohere has said its focus on business customers also allows it to spend less on computing infrastructure than rivals with large consumer AI services.
The startup told investors in February that it generated $240 million in annual recurring revenue in 2025.
Cohere raised $500 million at a $6.8 billion valuation in August 2025, followed by another $100 million the next month. Its existing backers include Radical Ventures, Inovia Capital, Nvidia, Business Development Bank of Canada, Healthcare of Ontario Pension Plan and PSP Investments.
The talks follow a major funding round for French AI company Mistral, which also presents itself as a sovereign alternative to U.S. providers. Mistral raised $3.5 billion this week at a post-money valuation of more than $24 billion. Samsung Electronics led the round.