$6.8B Cohere expands to Paris as AI firms battle for Europe

Canadian AI startup Cohere has opened a new office in Paris, marking its European expansion as it seeks to capture more market share in the region’s growing AI sector. The $6.8 billion-valued company joins the competitive landscape against European players like France’s Mistral AI, as both firms target enterprise clients with promises of enhanced data security and sovereignty.

The big picture: Cohere’s Paris office opening reflects the intensifying global competition among AI companies to establish regional footholds, particularly as smaller firms challenge U.S. giants like OpenAI, Microsoft, and Meta for enterprise market share.

Why this matters: Europe represents a significant growth opportunity for AI companies, with businesses increasingly prioritizing data sovereignty and security—areas where both Cohere and European competitors are positioning themselves as alternatives to U.S.-dominated platforms.

What the CEO is saying: Aidan Gomez, Cohere’s CEO, highlighted Europe’s accelerating adoption of AI services.

• “Previously, when we’ve looked at our global revenue, Europe had been slower to take off, but we’re starting to see renewed momentum, in particular this year,” Gomez told reporters.
• He expressed confidence in France’s tech ecosystem despite recent political unrest, saying he was “super confident” in the country’s potential.

Strategic context: The move aligns with French President Emmanuel Macron’s initiative to establish Paris as a European AI hub, part of broader efforts to strengthen Europe’s digital sovereignty and reduce dependence on foreign tech platforms.

Competitive landscape: Cohere faces direct competition from France’s Mistral AI, which achieved an $11.7 billion valuation this month and declined to comment on Cohere’s European expansion.

• Both companies are targeting business clients with emphasis on data security and sovereignty concerns.
• Founded in 2019, Cohere already partners with major global companies including South Korea’s LG, Japan’s Fujitsu, and Oracle in the U.S.

Market dynamics: The expansion reflects the broader struggle among smaller AI firms to compete against established U.S. technology giants that currently dominate the artificial intelligence industry, with European enterprises increasingly seeking alternatives that address regional regulatory and security requirements.