Toronto-based generative AI startup Cohere is seeking to raise more than $500 million in new funding at a valuation exceeding $5.5 billion, according to multiple reports including the Financial Times. This fundraising effort aims to help Cohere compete in the increasingly expensive race to develop advanced AI models alongside major rivals such as OpenAI, Google, and Anthropic. Cohere previously raised $500 million in a Series D funding round at a $5.5 billion valuation in July 2024. The AI industry is witnessing intense competition for talent and capital, with companies like OpenAI and DeepMind reportedly losing engineers to Anthropic.