Cohere, the Canadian AI startup valued at $5.5 billion, partners with Palantir to deploy its AI models via the data analytics firm’s Foundry platform, marking a significant development in the enterprise-focused AI market.
Cohere’s Partnership with Palantir: A Quiet Collaboration in AI Development
Cohere, the Canadian AI startup valued at $5.5 billion, has been working closely with Palantir, a data analytics company co-founded by Peter Thiel. This partnership appears to be focused on deploying Cohere’s AI models via Palantir’s Foundry platform, which serves corporate clients.
A Partnership in the Making
While Cohere has not officially announced its collaboration with Palantir, a segment during Palantir’s developer conference in November revealed the startup’s work with Palantir. Cohere’s models have already been deployed to Palantir customers, and the partnership seems to be centered around Palantir’s Foundry platform.
Cohere: A Startup Focused on Enterprise AI
Cohere was founded in 2019 by former Google researchers Nick Frosst, Ivan Zhang, and Aidan Gomez. Unlike its competitors, such as OpenAI and Anthropic, which focus on consumer products or advancements in artificial general intelligence (AGI) research, Cohere has positioned itself as a startup focused on building tailored models for enterprise clients like McKinsey and Deloitte.
A Low-Profile Strategy with High Returns
Cohere’s low-profile strategy has attracted the attention of corporate investors like Cisco, AMD, and Fujitsu, who participated in a $500 million funding round in July that valued the startup at $5.5 billion – more than doubling its previous valuation of $2.1 billion a year earlier. Other backers of Cohere include renowned AI academics Geoffrey Hinton and Fei-Fei Li.
The Rise of Enterprise-Focused AI
The partnership between Cohere and Palantir is part of a larger trend in the AI industry, where startups are increasingly focusing on building tailored models for enterprise clients. This shift in focus has led to significant investments from corporate investors, who see the potential for AI to drive business growth and innovation.
A Growing Market for Enterprise AI
The market for enterprise-focused AI is growing rapidly, with the value of AI-related federal contracts soaring 150 percent between August 2022 and 2023 to a staggering $675 million, according to a study from the Brookings Institute. This trend is expected to continue, as more startups like Cohere focus on building tailored models for enterprise clients.
Cohere’s partnership with Palantir is a significant development in the AI industry, highlighting the growing demand for enterprise-focused AI solutions. As the market continues to evolve, it will be interesting to see how Cohere and other startups navigate this space and drive innovation in AI development.
