Why OpenAI Challenger Cohere Fell 85% Short of Its Revenue Forecast

The conversational intelligence boom sparked by OpenAI unleashed a flood of venture capital dollars for the sector, but AI developers that didn’t focus on selling revenue-generating applications fast enough have been left in the dust.

One of the best examples is Cohere, an OpenAI rival that was developing similar technology years before the launch of ChatGPT in 2022 and has raised a total of nearly $1 billion from investors. As of February this year, Cohere was on pace to generate just $70 million in revenue annually from licensing its AI models to enterprises, meaning it was generating less than $6 million a month at the time. That’s far short of what it told investors in 2023 it expected to be making by now.