AI cloud provider Boost Run has signed a $525.6 million contract with Canadian AI company Cohere, giving the startup access to dedicated GPU cloud infrastructure and related services. The agreement calls for each rack to remain under contract for roughly five years, creating a long-duration capacity commitment at a time when AI companies are competing aggressively for high-performance computing resources. Part of the contract value can be prepaid, providing Boost Run with an important source of upfront cash as it expands its infrastructure footprint. Cohere is expected to begin accepting the infrastructure in the second quarter of 2027, which will mark the start of the contractual term.

The agreement also sets a delivery threshold that could materially affect the relationship if Boost Run misses its infrastructure obligations. If the provider has not delivered a minimum amount of infrastructure by July 15, 2027, Cohere can terminate the agreement and receive a refund of all prepaid amounts. The companies have not disclosed which data centers will support the contract, leaving the precise physical footprint of the deployment unclear. Nevertheless, the scale of the commitment signals that Cohere is positioning for sustained AI compute demand rather than relying solely on shorter-term capacity arrangements.

Boost Run Builds a Wider GPU Infrastructure Base

Boost Run, founded in 2024, operates bare-metal GPU infrastructure aimed at AI and high-performance computing workloads. The company said in an earlier SEC filing that it “owns and operates bare-metal GPU servers within top-tier data centers used to run AI and HPC workloads.” By the end of 2025, Boost Run operated across four TierPoint data centers in Seattle, Washington; Durham, North Carolina; Dallas, Texas; and Richardson, Texas.

The company previously outlined plans to expand its relationship with TierPoint and add 16 megawatts to its footprint. Those plans included facilities in Charlotte, North Carolina; St. Louis, Missouri; and Breinigsville, Pennsylvania. Boost Run has since listed additional locations in Rock Island, Illinois; Charlotte, North Carolina; Minneapolis, Minnesota; and Marietta, Georgia, indicating a broader geographic strategy for distributing GPU capacity across US markets.

Rapid Expansion Comes With Rising Infrastructure Costs

Boost Run’s latest filings show how quickly the economics of its infrastructure business are changing. During the six months ended June 30, 2026, the company entered four colocation leases, including two signed during the first quarter for three and seven years and two additional three-year leases signed during the second quarter. The filing does not establish whether all four agreements involve TierPoint. Colocation costs have climbed sharply alongside the company’s expansion. During its most recent quarter, Boost Run reported $10.56 million in colocation lease costs, a 576% increase from the same period a year earlier.

Revenue reached $31.14 million, compared with $8.423 million a year earlier, while the company posted an operating loss of $12.9 million. That contrast highlights the financial challenge facing GPU cloud providers: securing large customers can accelerate revenue growth, but providers must commit substantial capital and recurring infrastructure costs before deployments reach full utilization. Boost Run’s Cohere agreement therefore represents both a major commercial win and a test of whether the company can convert contracted demand into profitable infrastructure operations.

Cohere Expands Its AI Compute Commitments

Cohere has continued to secure external computing capacity as it develops its enterprise-focused AI business. The company previously signed a $220 million cloud agreement with Buzz HPC for capacity at its data center in Merritt, British Columbia, adding another large infrastructure commitment to its expanding compute portfolio. Cohere also has an established relationship with AMD, agreeing in September 2025 to expand its use of the chipmaker’s Instinct GPUs. Together with the Boost Run agreement, those moves point to a broader strategy built around securing GPU availability across multiple infrastructure providers. For Boost Run, the Cohere contract offers a sizable anchor customer and a multiyear demand commitment. However, the ultimate value of the deal will depend on execution: delivering the promised capacity on schedule, managing rapidly rising colocation expenses and turning contracted GPU infrastructure into sustainable margins.