The Globe and Mail reports in its Saturday edition that artificial-intelligence company Cohere earned $240-million in annual recurring revenue last year, topping its own forecast (all figures U.S.). The Globe's Joe Castaldo writes that the privately held company had previously forecast $200-million in revenue. Its gross margins, meanwhile, averaged 70 per cent in 2025 and grew year-over-year. Founded in 2019, Cohere builds large language models (LLMs) for enterprise customers and competes with much bigger rivals such as OpenAI and Anthropic. The ability for AI developers to boost adoption, reduce expenses and make money is a pressing issue as investment dollars continue to flow into the sector and concerns about a financial bubble persist. While the Cohere memo paints a rosy picture, the company still has to prove it can generate profits in the face of intense competition. Cohere, which was valued at $7-billion in its latest fundraising round in September, has long touted how it differs from its peers, in part through its focus on security standards to meet the needs of large enterprises and regulated industries. Last year, Cohere signed on Royal Bank of Canada and BCE's Bell Canada as customers.