Cohere's valuation jumped to $20 billion after merging with Aleph Alpha.
CEO Aidan Gomez urges CEOs to diversify AI suppliers for resilience.
He calls reliance on authoritarian states a core risk.
What happened
Cohere's valuation rose from $7 billion to $20 billion after merging with Germany's Aleph Alpha in April. CEO Aidan Gomez argues business leaders are waking up to the risk of geopolitical crossfire between the US and China, citing export controls on Anthropic's Mythos AI model in June.
Why it matters
Companies worry as much about control as cost or power of AI models. Cohere offers "AI sovereignty," or full control over AI infrastructure, claiming it can't see in, switch off, or intervene once deployed. Skeptics see this as a pipe dream, calling it prohibitively expensive to duplicate US and Chinese technology.
What to watch
One analysis estimates up to 40% of AI spending could be influenced by sovereignty requirements by 2030. Cohere released an IDC study showing most executives in four countries believe AI sovereignty is important, but few can define it or have a firm plan.
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Cohere's rise from a $7 billion to a $20 billion valuation reflects a growing demand for AI alternatives outside the US-China duopoly. The merger with Aleph Alpha positions it as a resilient option for enterprises and governments seeking control over their AI infrastructure.
Gomez frames AI sovereignty not as a future risk but as a present-day concern, citing export controls on Anthropic's model as an example. He argues that concentrating supply chains creates vulnerabilities, and diversification is essential for democratic resilience.
While skeptics question the feasibility and cost of sovereign AI, Cohere's pitch resonates with executives who worry about control. The IDC study's finding—that most executives see sovereignty as important but lack a clear plan—suggests a gap between awareness and action, which Cohere aims to fill.
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