Aidan Gomez's Cohere Reaches $5 Billion Valuation with Nvidia's Backing

In 2017, Aidan Gomez was an intern at Google Brain, contributing to the seminal "Attention Is All You Need" paper that introduced the transformer, a breakthrough in artificial intelligence that sparked the generative AI revolution. At that time, Gomez was a computer science student at the University of Toronto. Fast forward to 2021, Gomez left Google to co-found Cohere, an AI startup that has since attracted significant backing from Nvidia and achieved a valuation of $5 billion. Unlike consumer-oriented products like OpenAI's ChatGPT, Cohere focuses on developing generative AI models tailored for business applications.

Reflecting on his journey, Gomez told CNBC, "There’s no one in the field who was around back then working who could have foreseen where we are in terms of technological capability. The models are doing stuff that I personally thought maybe I’d see at the end of my career, maybe in like 40 years." This perspective highlights the rapid and unexpected advancements in AI technology over the past few years.

Cohere has seen substantial growth and interest. In June 2023, the company raised $270 million at a $2.2 billion valuation from prominent investors including Salesforce and Oracle. The startup's rapid expansion is evident, with the team growing from a handful of individuals to around 400 employees, as it aggressively builds its sales team. Gomez shared, "Everything to date has been done with like five people," underscoring the impressive progress made with a small initial team.

The impact of generative AI on productivity is increasingly being recognized. Gomez cited research from MIT and Harvard demonstrating significant productivity gains. "You can just quantitatively measure it. You sit a knowledge worker down next to one of these models. You train them on how to use it, how to make it useful for them. They have to learn how to use the technology, but once they do, you see productivity lifts that are like 40%," Gomez explained. These findings underscore the potential of AI to transform workflows and efficiency across various industries.

One notable application of Cohere's technology is in the insurance sector. Gomez described a model developed to assist an insurer in submitting faster quotes, particularly for requests from mining or pipeline firms. "The first insurance provider that puts a reasonable bid in front of them wins that contract," Gomez noted, emphasizing the competitive edge provided by rapid response times. By augmenting the work of actuaries—professionals who assess risk and develop quotes—the model enabled the insurer to secure more contracts by being the first to present a bid. "I never thought that an insurance company for natural resource projects would be adopting large language models. But they are," Gomez remarked, highlighting the unexpected but impactful applications of AI.

Cohere's involvement in high-profile forums, including AI discussions at the White House, further underscores its growing influence in the AI industry. The startup’s focus on business applications sets it apart from consumer-centric AI developments, offering tailored solutions that directly impact company operations and profitability.

Looking ahead, Aidan Gomez and Cohere continue to push the boundaries of what AI can achieve in the business world. Their work not only demonstrates the current capabilities of generative AI but also sets the stage for future innovations that could redefine industries. As Gomez's career trajectory illustrates, the transformative power of AI is unfolding faster than many in the field could have anticipated, bringing futuristic capabilities into present-day business operations.

Aidan Gomez's transition from a Google Brain intern to a co-founder of a leading AI startup showcases the rapid evolution and expansive potential of AI technology. Cohere's innovative approach and impressive growth highlight the significant impact that generative AI can have on enhancing business productivity and efficiency.