OpenAI Issues Warning on SPVs and Other “Unauthorized” Investments

OpenAI Issues Warning on Unauthorized Equity Transactions

In a recent blog post, OpenAI cautions against “unauthorized opportunities to gain exposure to OpenAI through various means,” particularly through special purpose vehicles (SPVs).

Be Cautious of SPV Offers Involving OpenAI

“We advise you to exercise caution if approached by any firm claiming to have access to OpenAI, especially regarding the sale of SPV interests linked to OpenAI equity,” the company states. While the post clarifies that “not every offer of OpenAI equity is problematic,” it warns that some firms may be attempting to bypass their transfer restrictions.

Understanding the Risks of Unauthorized Sales

“If that is the case, the sale will not be acknowledged and will hold no economic value for you,” OpenAI emphasizes.

The Rising Trend of SPVs Among Investors

Investors have increasingly turned to SPVs, which aggregate funds for single investment opportunities, as a means of investing in rapidly growing AI startups. This trend has led some VCs to criticize SPVs as instruments for “tourist chumps.”

Other AI Companies Follow Suit in SPV Regulations

According to Business Insider, OpenAI is not alone in its efforts to regulate SPVs; Anthropic has reportedly informed Menlo Ventures that it must utilize its own funds, rather than an SPV, to participate in an upcoming investment round.

Certainly! Here are five FAQs regarding OpenAI’s warning against SPVs (Special Purpose Vehicles) and other unauthorized investments:

FAQ 1: What are SPVs (Special Purpose Vehicles)?

Answer: SPVs are legal entities created for a specific purpose, often to isolate financial risk. They are commonly used in investments to pool funds for particular projects or ventures. However, they can also carry risks, especially if not properly regulated or understood.

FAQ 2: Why has OpenAI warned against unauthorized investments?

Answer: OpenAI cautions against unauthorized investments because they may lack regulation, transparency, and oversight. This can lead to increased risks for investors, including potential fraud, financial losses, or unexpected obligations.

FAQ 3: What should I consider before investing in an SPV?

Answer: Before investing in an SPV, consider the regulatory status, the credibility of the managing parties, the clarity of investment objectives, the associated fees, and the potential risks involved. It’s advisable to conduct thorough due diligence and seek guidance from financial professionals.

FAQ 4: Are there any signs that an investment opportunity is unauthorized?

Answer: Signs of an unauthorized investment opportunity may include a lack of transparency, no clear regulatory oversight, promises of unusually high returns with low risk, and aggressive sales tactics. Always verify the legitimacy of the offering through official channels.

FAQ 5: What should I do if I suspect I’ve encountered an unauthorized investment?

Answer: If you suspect you’ve encountered an unauthorized investment, cease any further engagement and report it to the relevant authorities, such as financial regulatory bodies. Additionally, consult with a legal or financial advisor for guidance on the next steps.

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Cohere Achieves $6.8B Valuation as AMD, Nvidia, and Salesforce Boost Their Investments

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    <h2>Cohere Secures $500 Million in Oversubscribed Funding Round, Valued at $6.8 Billion</h2>

    <p id="speakable-summary" class="wp-block-paragraph">On Thursday, Cohere <a target="_blank" href="https://cohere.com/blog/august-2025-funding-round" rel="noreferrer noopener nofollow">announced</a> it has successfully raised an oversubscribed $500 million funding round, raising its valuation to $6.8 billion. This marks a significant increase from its previous valuation of $5.5 billion from a round held just over a year ago, which also raised $500 million.</p>

    <h3>A Pioneer in Enterprise AI: Who is Cohere?</h3>

    <p class="wp-block-paragraph">Founded in 2019 and headquartered in Toronto, Cohere was among the first breakthrough companies in large language model (LLM) technology. Co-founder Aidan Gomez, who contributed to the influential “<a target="_blank" href="https://en.wikipedia.org/wiki/Attention_Is_All_You_Need" rel="noreferrer noopener nofollow">Attention Is All You Need</a>” paper, has positioned Cohere as a solid contender in an AI landscape dominated by giants like OpenAI, Anthropic, and Meta. Unlike many competitors, Cohere focuses on offering secure LLMs tailored for enterprise applications rather than consumer use.</p>

    <h3>Strategic Partnerships with Leading Tech Giants</h3>

    <p class="wp-block-paragraph">Cohere has formed key partnerships with several high-profile enterprise technology companies, including Oracle, Dell, Bell, Fujitsu, LG’s consulting service CNS, and SAP, alongside esteemed enterprises like RBC and a new participant in this funding round: the Healthcare of Ontario Pension Plan.</p>

    <h3>Focus on Security in AI</h3>

    <p class="wp-block-paragraph">In a bold statement, Cohere’s press release emphasizes its commitment to a "security-first" approach to enterprise AI, claiming that such a necessity is not adequately addressed by traditional consumer models.</p>

    <h3>Talent Acquisition in a Competitive Landscape</h3>

    <p class="wp-block-paragraph">Despite its successes, Cohere is not immune to the rampant talent poaching plaguing the AI sector. Recently, the company appointed <a target="_blank" href="https://techcrunch.com/2025/08/14/cohere-hires-long-time-meta-research-head-joelle-pineau-as-its-chief-ai-officer/">Joelle Pineau</a>, a former top researcher at Meta, as its new Chief AI Officer. Additionally, Francois Chadwick has been brought on board as CFO, transitioning from a role at KPMG, with experience at Uber and Shield AI.</p>

    <h3>Investor Support and Future Prospects</h3>

    <p class="wp-block-paragraph">The recent funding round was spearheaded by Radical Ventures and Inovia Capital. Radical has previously supported ventures such as Fei-Fei Li’s World Labs, and Inovia is a well-known Canadian venture firm with a diverse portfolio that includes names like Poolside and Neo4j.</p>

    <p class="wp-block-paragraph">The round also saw participation from existing investors including AMD Ventures, Nvidia, and Salesforce Ventures. Interestingly, Oracle, a previous supporter, was not listed as a current participating investor—an aspect Cohere has yet to clarify.</p>

    <h3>Oracle's Changing Allegiances</h3>

    <p class="wp-block-paragraph">Oracle backed Cohere in 2023; however, the database heavyweight has shifted its focus to align closely with OpenAI, particularly regarding its extensive Stargate data center project.</p>

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This rewritten article utilizes engaging headlines and SEO-friendly formatting to effectively communicate the key points about Cohere’s funding and strategic positioning in the AI landscape.

Here are five FAQs based on Cohere’s $6.8 billion valuation and the investments from AMD, Nvidia, and Salesforce:

FAQ 1: What is Cohere’s current valuation?

Answer: Cohere has reached a valuation of $6.8 billion, indicating significant growth and investor confidence in the company’s potential.

FAQ 2: Which major companies have invested in Cohere?

Answer: Major investors in Cohere include AMD, Nvidia, and Salesforce, all of which have doubled down on their investments, reflecting their belief in Cohere’s technology and market position.

FAQ 3: What area does Cohere specialize in?

Answer: Cohere specializes in natural language processing (NLP) and AI-driven language models, focusing on enhancing machine learning capabilities for various applications.

FAQ 4: How will the investments from AMD, Nvidia, and Salesforce impact Cohere’s growth?

Answer: The investments from these tech giants are expected to bolster Cohere’s research and development efforts, expand its market reach, and accelerate the deployment of its AI technologies, increasing its competitive edge.

FAQ 5: Why is the $6.8 billion valuation significant for the AI industry?

Answer: This valuation underscores the growing demand for AI solutions and highlights investor confidence in the sector, suggesting that companies like Cohere are pivotal in shaping the future of artificial intelligence and machine learning.

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