The CEO believes that scaling artificial intelligence in Canada will become profitable before 2029.
Cohere CEO Aidan Gomez believes Toronto's artificial intelligence (AI) scaling could hit the public markets “soon.”
“I think public market investors would be happy to have the opportunity to invest in artificial intelligence in its purest form rather than through hyperscale.”
Aidan Gomez,
Approve
Gomez made the comment while discussing his company's place in the artificial intelligence market with Bloomberg's Lynn Doan on Bloomberg Tech conference in London this week. On stage, Gomez told Doan that he believes his company will be profitable before 2029.
“We have a differentiated implementation model, we have very high profitability, similar to traditional [software-as-a-service] business while many others in the industry are losing money per customer,” Gomez said. [we are] is in a very good position to build a sustainable, profitable business.”
Gomez initially told Doan that he didn't know when his company would hold an initial public offering (IPO), adding with his fingers crossed that he “didn't want to jinx” a potential IPO.
“I think [we’ll IPO] “soon,” Gomez said, returning to formalities. “We are on a clear path to profitability; I think public market investors would be happy to have the opportunity to invest in artificial intelligence in its purest form, rather than through hyperscalers.”
At Doan's urging, Gomez said he would consider listing on the British stock exchange, especially since the Canadian-born entrepreneur lives in the country where his mother is from. However, he noted that the “key constraint” is access to capital.
CONNECTED: Cohere's new CFO on carving out space in a crowded AI market
“If this [capital] exists, we will be rational economic actors and transfer anywhere,” Gomez said.
Founded in 2019 by former Google researchers, Cohere creates large language models (LLMs) that are used in chatbots and other artificial intelligence applications for companies and government agencies. Cohere has raised US$600 million from investors in recent months, reaching a valuation of US$7 billion.
IPO Talk Follows Cohere I'm opening a secondary sale this week. so that his employees sell shares of their company. Secondary secondary steels increasingly popular means creating liquidity for shareholders amid a lack of income from exits such as IPOs. The company also has recently added former Uber executive Francois Chadwick became its first chief financial officer. He served as acting CFO of the ride-sharing company and played a leadership role during the firm's IPO.
The on-stage conversation also revealed that Cohere has achieved annual recurring revenue of US$150 million, up from US$100 million. reported in May. Cohere expects to generate $200 million in revenue this year, a source familiar with the company's operations told BetaKit.
Gomez also highlighted the work Canadian AI, dear what it has done over the past year to grow outside the United States, including new offices And partnership. Gomez said the moves eliminated Cohere's dependence on the U.S. as its main source of revenue (80 percent last year), with most of the money now coming from other countries.
Image courtesy of Toronto Technology Week.
