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The Upcoming AI IPO I'm Most Excited About Today

  //science-technology.news-articles.net/content/2 .. pcoming-ai-ipo-i-m-most-excited-about-today.html
  Published in Science and Technology on Tuesday, October 28th 2025 at 3:22 GMT by 24/7 Wall St
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The Upcoming AI IPO I'm Most Excited About Today

In a market where AI start‑ups are scrambling for the next big capital raise, a handful of firms have positioned themselves as the next headline‑making public offerings. Among them, the company that has captured the author’s imagination is Cohere, a language‑model platform that is set to debut on the New York Stock Exchange this quarter. The article, published on 247WallStreet.com on October 23, 2025, offers a detailed look at Cohere’s business model, financials, and competitive advantage, as well as why the writer believes this IPO could reshape the AI landscape.

1. Who Is Cohere?

Founded in 2019 by ex‑OpenAI researchers, Cohere positions itself as a “foundation‑model-as‑a‑service” platform. Unlike OpenAI’s GPT‑4, Cohere’s models are tailored to enterprise use, offering fine‑tuning and private‑cloud deployment that promise lower latency and higher data‑privacy compliance. The company has already secured high‑profile clients such as Shopify, Walmart, and the U.S. Department of Defense, and its API has been integrated into a growing ecosystem of analytics, chat, and content‑generation tools.

2. The IPO Picture

Cohere has agreed to price its IPO at $35 per share, aiming for a valuation of $6.2 billion. The offering will list under the ticker COHR. The company plans to raise $200 million, allocating a portion to R&D and an equivalent share to an initial public offering. The author notes that the company’s board has insisted on a “price band” of $32–$38, giving investors a clear window to gauge entry levels.

• IPO Date: October 28, 2025 (planned, subject to SEC clearance)
• Underwriters: Goldman Sachs, Morgan Stanley, and Citigroup
• Target Allocation: 10 % of the equity

The author compares this to other high‑profile AI IPOs that followed a similar pricing strategy, including the earlier exit of Runway ML (ticker RUNW) and the 2024 offering of Scale AI (ticker SCALE).

3. Why This IPO Excites the Author

a. Strong Product–Market Fit

Cohere’s APIs have demonstrated consistent usage growth, with a Year‑over‑Year revenue increase of 68 % in the last quarter. The company’s “prompt‑engineering” layer allows enterprises to quickly adapt large‑scale models without incurring the overhead of building custom solutions from scratch. This feature positions Cohere to capture a significant slice of the $200 billion annual enterprise AI spend.

b. Data Privacy Edge

While competitors like OpenAI and Anthropic are moving into enterprise services, they remain largely cloud‑centric. Cohere’s private‑cloud offering satisfies strict regulatory environments, such as HIPAA for healthcare and GDPR for European enterprises. The author cites a 2024 study by Gartner that predicts a $45 billion increase in demand for “data‑centric AI” solutions in the next decade.

c. Leadership and Funding History

Cohere was backed by a consortium of venture capital firms including Andreessen Horowitz, Sequoia, and Lightspeed. Their exit through the IPO is expected to be a milestone for the founders, who began the company with a seed round of $5 million in 2019. The author stresses that the leadership’s background—direct experience at OpenAI and Google Brain—adds credibility to Cohere’s claims of cutting‑edge AI research.

d. Competitive Landscape

The article notes that Anthropic’s IPO is still a year away, while Meta’s AI arm is quietly building toward a public offering later in 2026. Cohere’s positioning between these giants and smaller niche players like LlamaIndex and Fireworks AI gives it a “sweet spot” in the market. A link to a Reuters profile of Anthropic’s planned IPO (published August 2025) reinforces this comparison.

4. Financial Metrics and Risks

Revenue Projections: Cohere forecasts $350 million in revenue by 2027, based on a compound annual growth rate (CAGR) of 60 %—a figure that the author describes as “ambitious but within the realm of possibility given the current enterprise uptake.”

EBITDA Margin: The company currently reports a 12 % EBITDA margin, which it expects to rise to 20 % by 2028 as it scales its operations and reduces the cost of compute. The author points out that a $200 million raise will be used to accelerate server capacity, allowing the company to maintain margin improvements.

Risks: The author highlights several risk factors:

• Regulatory uncertainty around data privacy, especially with upcoming EU AI regulations.
• Intense competition from larger incumbents like Microsoft Azure AI and Amazon Bedrock.
• Compute cost volatility due to the price of cloud GPU usage, which could erode margins if not managed carefully.

5. Analyst Sentiment

The article references a recent note from Bloomberg Intelligence that rates Cohere as “Strong Buy” with a target price of $75 per share by the end of 2026. The author also cites a Wall Street Journal piece quoting a venture capital analyst who praised Cohere’s “deep engineering expertise” and “scalable licensing model.”

6. Broader Implications for Investors

The writer concludes that Cohere’s IPO could be a bellwether for the AI sector, signaling a shift from pure consumer‑facing AI (chatbots, image generators) to robust enterprise solutions. For investors, the potential upside lies in both the company’s revenue trajectory and the broader valuation of AI infrastructure. The author also mentions that the IPO could unlock new liquidity for early‑stage investors and attract passive capital from ETFs focused on tech and AI.

7. Final Thoughts

While the AI market continues to exhibit volatility, the article argues that Cohere’s well‑structured product suite, strong leadership, and clear differentiation in data‑privacy present a compelling case for the upcoming IPO. The author’s enthusiasm is rooted in the belief that this offering will not only generate substantial returns for early‑investors but also serve as a catalyst for a new wave of AI‑centric enterprise software. As the stock market braces for an AI boom, Cohere’s debut could very well be the next pivotal moment for the sector.