Artificial intelligence startup Cohere has more than doubled its annualized revenue since the beginning of the year, reaching over $100 million as of May 2025.

The surge in revenue comes as the company intensifies its focus on delivering secure, customized AI solutions for enterprise clients in heavily regulated industries such as finance, healthcare, and government.

Cohere stated the majority of its revenue now stems from long-term contracts, with about 85% of business coming from private deployments of its AI models. The company also reports profit margins as high as 80%.

The growth follows a strategic pivot made in the third quarter of 2024, when Cohere shifted away from building massive foundation models and began emphasizing smaller, domain-specific models tailored for corporate use. CEO Aidan Gomez detailed the new direction in a year-end memo, describing it as a move toward “building for the enterprise.”

As part of this strategy, the company in January launched North, a ChatGPT-style application designed to assist knowledge workers with tasks like summarizing documents. North is currently in limited trials with clients including the Royal Bank of Canada and LG.

Founded in 2019, Cohere has raised over $900 million in funding from backers such as Nvidia, Cisco, and Inovia Capital. Its enterprise customer list also includes Fujitsu, Oracle, and Notion. The Toronto-based firm was last valued at $5.5 billion.