Toronto-based AI startup Cohere has raised $500 million in a Series D funding round led by Canadian pension fund PSP, achieving a valuation of $5.5 billion. This follows a previous funding round in 2023 where the company raised $270 million at a $2.2 billion valuation. Cohere, known for its innovative large language models, aims to use the new funds to further develop its technology and help enterprises adopt these models. The company is now one of the world's most valuable AI startups and a leading player in the Canadian tech scene. Cohere's backers include notable names such as Cisco and AMD. The funds will also help Cohere compete against generative AI rivals.