Tiger Global nears deal to sell stake in Cohere at $3B valuation - report
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Tiger Global is close to an agreement to sell part of its stake in OpenAI competitor Cohere at about a $3 billion valuation.
Tiger is selling a stake of 2.1% in Cohere for about $63 million, The Information reported on Tuesday according to people familiar with the matter. Tiger is expected to retain a roughly 5% stake in Cohere after the sale.
Cohere, a developer of large language models (LLMs), said in June it had raised $270 million in a new series C funding round, with participation from investors including NVIDIA (NVDA), Oracle (ORCL), and Salesforce's (CRM) venture capital arm. The fundraising round valued Cohere at $2.2 billion, according to The Information.
Tiger's sale of its stake would value Cohere's shares at between $130 and $140 each, compared to the $95 share valuation in its latest funding round, a person familiar with the matter told the publication.
OpenAI and its chatbot, ChatGPT have taken the world by storm as it makes advancements in the world of generative artificial intelligence. Microsoft (NASDAQ:MSFT) announced its "multibillion" dollar investment in OpenAi in January.
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