OpenAI rival Cohere says some AI startups build Bugatti sports cars, ‘We make F-150s’

Published

1 year ago

March 1, 2024

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Cohere president Martin Kon says a lot of the hot artificial intelligence startups on the market today are building the equivalent of fancy sports cars. His product, he says, is more like a heavy-duty truck.

“If you’re looking for vehicles for your field technical service department, and I take you for a test drive in a Bugatti, you’re going to be impressed by how fast and how well it performs,” Kon told CNBC in an interview. However, he said, the price coupled with the space limitations and lack of a trunk will be a problem.

“What you actually need is a fleet of F-150 pickup trucks,” Kon said. “We make F-150s.”

Founded by ex-Google AI researchers and backed by Nvidia, Cohere is betting on generative AI for the enterprise rather than on consumer chatbots, which have been the talk of the tech industry since OpenAI released ChatGPT in late 2022.

In June, Cohere raised $270 million at a $2.2 billion valuation, with Salesforce and Oracle participating in the funding round. Company executives have attended AI forums at the White House. And Cohere is reportedly in talks to raise up to $1 billion in additional capital.

“We don’t comment on rumors,” Kon told CNBC. “But someone once told me startups are always raising.”

The generative AI field has exploded over the past year, with a record $29.1 billion invested across nearly 700 deals in 2023, a more than 260% increase in deal value from a year earlier, according to PitchBook. It’s become the buzziest phrase on corporate earnings calls quarter after quarter, and some form of the technology is automating tasks in just about every industry, from financial services and biomedical research to logistics, online travel and utilities.

Although Cohere is often mentioned alongside AI heavyweights like OpenAI, Anthropic, Google and Microsoft, the startup’s focus on enterprise-only chatbots has set it apart.

Competitors offer AI products for both consumers and businesses. OpenAI, for instance, launched ChatGPT Enterprise in August, and Anthropic opened up consumer access to its formerly business-only Claude chatbot in July.

Kon, who’s also the company’s operating chief, said that by staying focused just on the enterprise, Cohere is able to run efficiently and keep costs under control even amid a chip shortage, rising costs for graphics processing units (GPUs) and ever-changing licensing fees for AI models.

“I’ve rarely seen, in my career, many companies that can successfully be consumer and enterprise at the same time, let alone a startup,” Kon said. He added, “We don’t have to raise billions of dollars to run a free consumer service.”

Current clients include Notion, Oracle and Bamboo HR, according to Cohere’s website. Many customers fall into the categories of banking, financial services and insurance, Kon said. In November, Cohere told CNBC it saw an uptick in customer interest after OpenAI’s sudden and temporary ouster of CEO Sam Altman.

Kon acknowledges that changing dynamics in the hardware industry have presented persistent challenges. The company has had a reserve of Google chips for well over two years, Kon said, secured in Cohere’s early days to help it pretrain its models.

Now, Cohere is moving toward using more of Nvidia’s H100 GPUs, which are powering most of today’s large language models.

Cohere’s relationships with strategic investors are another area where it differs from generative AI competitors, Kon said. Many companies have raised from the likes of Nvidia and Microsoft with some conditions that are tied to use of their software or chips.

Kon is adamant that Cohere has never accepted a conditional investment, and that every check it’s cashed – including from Nvidia – had no strings attached.

“In our last round, we had multiple checks the same size; we had no conditions associated with any one of them,” Kon said. “We explicitly made that decision so we could say we’re not beholden to anyone.”

Cohere’s decision to focus on enterprise-only chatbots may help the company stay out of the murky territory of misinformation concerns, particularly as election season nears.

In January, the Federal Trade Commission announced an AI inquiry into Amazon, Alphabet, Microsoft, OpenAI and Anthropic. FTC Chair Lina Khan described it as a “market inquiry into the investments and partnerships being formed between AI developers and major cloud service providers.” Cohere was not named.

Kon says the company’s growth so far has largely been around areas like search and retrieval, which require their own separate AI models. He calls it “tool use,” and it involves training models on where, when and how to look for information that an enterprise client needs, even if the model wasn’t trained on that data originally.

Search, Kon said, is a key piece of generative AI that’s getting less attention than other areas.

“That’s certainly, for enterprise, going to be the real unlock,” he said.

In discussing the timeline for expansion, Kon called 2023 “the year of the the proof of concept.”

“We think 2024 is turning into the year of deployment at scale,” he said.

WATCH: Generative AI will democratize access to enterprise data.

Technology

Google hires Windsurf CEO Varun Mohan, others in latest AI talent deal

Published

2 days ago

July 11, 2025

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Google hires Windsurf CEO Varun Mohan, others in latest AI talent deal

Chief executive officer of Google Sundar Pichai.

Marek Antoni Iwanczuk | Sopa Images | Lightrocket | Getty Images

Google on Friday made the latest a splash in the AI talent wars, announcing an agreement to bring in Varun Mohan, co-founder and CEO of artificial intelligence coding startup Windsurf.

As part of the deal, Google will also hire other senior Windsurf research and development employees. Google is not investing in Windsurf, but the search giant will take a nonexclusive license to certain Windsurf technology, according to a person familiar with the matter. Windsurf remains free to license its technology to others.

“We’re excited to welcome some top AI coding talent from Windsurf’s team to Google DeepMind to advance our work in agentic coding,” a Google spokesperson wrote in an email. “We’re excited to continue bringing the benefits of Gemini to software developers everywhere.”

The deal between Google and Windsurf comes after the AI coding startup had been in talks with OpenAI for a $3 billion acquisition deal, CNBC reported in April. OpenAI did not immediately respond to a request for comment.

The move ratchets up the talent war in AI particularly among prominent companies. Meta has made lucrative job offers to several employees at OpenAI in recent weeks. Most notably, the Facebook parent added Scale AI founder Alexandr Wang to lead its AI strategy as part of a $14.3 billion investment into his startup.

Douglas Chen, another Windsurf co-founder, will be among those joining Google in the deal, Jeff Wang, the startup’s new interim CEO and its head of business for the past two years, wrote in a post on X.

“Most of Windsurf’s world-class team will continue to build the Windsurf product with the goal of maximizing its impact in the enterprise,” Wang wrote.

Windsurf has become more popular this year as an option for so-called vibe coding, which is the process of using new age AI tools to write code. Developers and non-developers have embraced the concept, leading to more revenue for Windsurf and competitors, such as Cursor, which OpenAI also looked at buying. All the interest has led investors to assign higher valuations to the startups.

This isn’t the first time Google has hired select people out of a startup. It did the same with Character.AI last summer. Amazon and Microsoft have also absorbed AI talent in this fashion, with the Adept and Inflection deals, respectively.

Microsoft is pushing an agent mode in its Visual Studio Code editor for vibe coding. In April, Microsoft CEO Satya Nadella said AI is composing as much of 30% of his company’s code.

The Verge reported the Google-Windsurf deal earlier on Friday.

WATCH: Google pushes “AI Mode” on homepage

Technology

Nvidia’s Jensen Huang sells more than $36 million in stock, catches Warren Buffett in net worth

Published

3 days ago

July 11, 2025

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Nvidia's Jensen Huang sells more than million in stock, catches Warren Buffett in net worth

Jensen Huang, CEO of Nvidia, holds a motherboard as he speaks during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, on June 11, 2025.

Gonzalo Fuentes | Reuters

Nvidia CEO Jensen Huang unloaded roughly $36.4 million worth of stock in the leading artificial intelligence chipmaker, according to a U.S. Securities and Exchange Commission filing.

The sale, which totals 225,000 shares, comes as part of Huang’s previously adopted plan in March to unload up to 6 million shares of Nvidia through the end of the year. He sold his first batch of stock from the agreement in June, equaling about $15 million.

Last year, the tech executive sold about $700 million worth of shares as part of a prearranged plan. Nvidia stock climbed about 1% Friday.

Huang’s net worth has skyrocketed as investors bet on Nvidia’s AI dominance and graphics processing units powering large language models.

The 62-year-old’s wealth has grown by more than a quarter, or about $29 billion, since the start of 2025 alone, based on Bloomberg’s Billionaires Index. His net worth last stood at $143 billion in the index, putting him neck-and-neck with Berkshire Hathaway‘s Warren Buffett at $144 billion.

Shortly after the market opened Friday, Fortune‘s analysis of net worth had Huang ahead of Buffett, with the Nvidia CEO at $143.7 billion and the Oracle of Omaha at $142.1 billion.

Tesla to officially launch in India with planned showroom opening

Published

3 days ago

July 11, 2025

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Tesla to officially launch in India with planned showroom opening

Elon Musk meets with Indian Prime Minister Narendra Modi at Blair House in Washington DC, USA on February 13, 2025.

Anadolu | Anadolu | Getty Images

Tesla will open a showroom in Mumbai, India next week, marking the U.S. electric carmakers first official foray into the country.

The one and a half hour launch event for the Tesla “Experience Center” will take place on July 15 at the Maker Maxity Mall in Bandra Kurla Complex in Mumbai, according to an event invitation seen by CNBC.

Along with the showroom display, which will feature the company’s cars, Tesla is also likely to officially launch direct sales to Indian customers.

The automaker has had its eye on India for a while and now appears to have stepped up efforts to launch locally.

In April, Tesla boss Elon Musk spoke with Indian Prime Minister Narendra Modi to discuss collaboration in areas including technology and innovation. That same month, the EV-maker’s finance chief said the company has been “very careful” in trying to figure out when to enter the market.

Tesla has no manufacturing operations in India, even though the country’s government is likely keen for the company to establish a factory. Instead the cars sold in India will need to be imported from Tesla’s other manufacturing locations in places like Shanghai, China, and Berlin, Germany.

As Tesla begins sales in India, it will come up against challenges from long-time Chinese rival BYD, as well as local player Tata Motors.

One potential challenge for Tesla comes by way of India’s import duties on electric vehicles, which stand at around 70%. India has tried to entice investment in the country by offering companies a reduced duty of 15% if they commit to invest $500 million and set up manufacturing locally.

HD Kumaraswamy, India’s minister for heavy industries, told reporters in June that Tesla is “not interested” in manufacturing in the country, according to a Reuters report.

Tesla is looking to recruit roles in Mumbai, job listings posted on LinkedIn . These include advisors working in showrooms, security, vehicle operators to collect data for its Autopilot feature and service technicians.

There are also roles being advertised in the Indian capital of New Delhi, including for store managers. It’s unclear if Tesla is planning to launch a showroom in the city.