Cohere Makes AI Breakthrough While Shares Trade at a 20% Market Discount
Weekly Edition & Stock Spotlight
October 14, 2024
PM50 Growth Index & Sectors YTD Performance
Most Active Names Performance
Data as of October 14, 2024.
* Price (USD) estimated based on secondary market activity observed by PM Insights (f/k/a ApeVue). Valuation is estimated based on said price and share count from state filings and/or news in the public domain. Note that share count in calculations may change as new filing documents are obtained.
PM50 Growth Privates versus Public Benchmarks/ETFs
<row>
<col>
</col>
<col>
Public v. Private (12mo)
The PM50 Growth tracks the performance of the 50 most active private names observed in the secondary market. It is an equal-weighted index, rebalanced on a monthly basis.
This rebalancing of constituents over time gives way for more active names to participate in what we observe as "market performance," and in a more appropriate manner than static selections and weightings criteria.
</col>
</row>
AI Automation Cloud & Infra
“The union of research and product will realize a world where technology commands language in a way that's as compelling and coherent as ourselves.”
Cohere is a leading artificial intelligence company specializing in natural language processing (NLP) and machine learning solutions. Founded in 2019 by a team of renowned AI researchers and industry experts, Cohere is headquartered in Toronto, Canada, and has rapidly established itself as a pioneer in transforming how businesses and developers leverage language technology to drive innovation and efficiency.
Business Model
Cohere’s language models facilitate tasks such as text generation, summarization, translation, and sentiment analysis, allowing businesses to automate processes and gain insights from large text datasets. The Cohere Platform provides a user-friendly interface and API for developers to integrate and customize these models without needing extensive AI expertise. Cohere also offers custom solutions, partnering with organizations to develop tailored NLP applications that address specific business challenges. Through these offerings, Cohere enables businesses to leverage the power of AI-driven language technology effectively.
<row>
<col>
Targeted Impact
Cohere aims to make AI-driven language processing more accessible and practical across various industries.
</col>
<col>
</col>
<col>
What Comes Next?
Enhance its product offerings, expand its global reach, and deepen its partnerships across various sectors.
</col>
</row>
<row>
<col>
</col>
<col>
Who Will benefit?
Businesses and Enterprises, Developers and Data Scientists, Startups, E-commerce Platforms, Researchers and Academics, Content Creators.
</col>
<col>
</col>
</row>
Cohere Growth Timeline
Cohere and Competition
<row>
<col>
2023 Revenue (in Millions of dollars)
</col>
<col>
Cohere operates in a competitive landscape with major players like OpenAI, Google, and Microsoft, all of which offer advanced AI and NLP solutions. Cohere differentiates itself with a focus on scalable, customizable NLP models tailored for enterprise use, alongside a strong commitment to ethical AI development. The industry is driven by increasing demand for AI solutions, rapid advancements in AI research, and the need to navigate ethical and regulatory concerns.
</col>
</row>
Prominent News
Fujitsu launches Cohere-powered Japanese LLM for enterprise use, October 2, 2024 - Cohere and Fujitsu collaborated to develop a large language model called Takane, which is designed for enterprise use in secure private environments. Click here to read more.
Draftwise enters collaboration with Cohere to refine Gen AI retrieval accuracy, October 9, 2024 - Cohere is partnering with DraftWise to use AI tools to enhance lawyers' ability to search through past deals. This collaboration aims to improve the accuracy of information retrieval by combining DraftWise's existing technology with Cohere's advanced AI, which is well-known for understanding context. Click here to read more.
Cohere partners with NRI to launch the NRI Financial AI Platform, October 8, 2024. - Cohere and Nomura Research Institute (NRI) are collaborating to launch the NRI Financial AI Platform, which is focused on enhancing overall productivity and operational efficiency for global financial institutions. The platform will be powered by Cohere's enterprise-grade AI models and is set to be released in the first half of 2025. Click here to read more.
Return on Investment (ROI)
ROI computed as of October 14, 2024.
Funding Round in USD
<row>
<card>
Series D Valuation
<span class="date">2024-06-14</span>
<span class="value">$5.5B</span>
</card>
<card>
Implied Valuation
<span class="date">2024-10-14</span>
<span class="value">$4.44B<span>
</card>
<card>
Change Since Last Round
<span class="date">2024-06-14 → 2024-10-14</span>
<span class="value red">-19.27%</span>
</card>
</row>
Quarterly Bid:Ask Volume Ratio
PM Insights highlights the monthly bid:ask volume ratio where there were at least three institutionally-sized broker contributions within that period.
Q1 of 2024 had the highest total volume at $387M, whereas Q3 of 2024 had the lowest total volume at $160M.
90D Activity
Activity at each date is the total unique broker contributions (bid/ask/trade) within the last 90 days of that date. Cohere's activity skyrocketed between May and June of 2024 and reached 54 unique broker contributions between February 1, 2024, and April 30, 2024.
Cohere Private Comparables in the Cloud & Infrastructure Sector
PM Insights highlights 5 active private companies that provides large language models within the AI sector as of October 14, 2024.
Change in Valuation
PM Insights uses composite prices based on the institutional-sized contributions within the last 90 days to compute implied valuations. PM Insights' current implied valuation reported below is computed as of October 14, 2024 and compared to each company's latest funding round valuation:
- Cohere's current implied valuation is $4.44B, a -19% decrease from its Series D valuation of $5.5B in June of 2024. Cohere's implied valuation was $3.87B on December 31, 2023.
- Anthropic's current implied valuation is $25B, a 36% increase from its Series D valuation of $18.4B in January of 2024. Anthropic's implied valuation was $27.10M on December 31, 2023.
- xAI's current implied valuation is $27.5B, a 15% increase from its recently raised Series B valuation of $24B in May of 2024. xAI's implied valuation was $1.52B on December 31, 2023.
- Perplexity AI's current implied valuation is $3.35B, a 6% increase from its Series C valuation at $3.15B in May of 2024. Perplexity AI's implied valuation was $180M on December 31, 2023.
Activity
The plot below displays the 90-day activity based on institutional-level ($1M+) broker contributions as of October 14, 2024. Anthropic shows the highest activity with 48 contributions. Cohere's activity stands at 19.
90D Bid and Ask Volume Ratio
The plot below illustrates the bid and ask volume ratio from July 17, 2024, to October 14, 2024. OpenAI had the highest total volume at $723M with 55% of its volume on the bid side. Perplexity AI had the smallest total volume at $95M; however, it had the highest bid side ratio at 79%.
Change in Composite Price
The plot below illustrates the change in composite price from September 14, 2024, to October 14, 2024.
OpenAI had the highest increase at 36%, while xAI experienced the most significant decrease at 6%.
Cohere's composite price increased slightly from $168.59 to $169.06.
Volatility of Composite Price
The volatility of the composite price is calculated based on the movement over the previous 90 days as of October 14, 2024. OpenAI had the highest volatility at 24.1%, whereas Perplexity had the lowest volatility at 4.7%. Cohere had moderate volatility at 10.4%.
Ready to see it in action?
Schedule a demo with one of our experts