In a significant move for the European artificial intelligence landscape, Canadian AI startup Cohere announced today its acquisition of German AI firm Aleph Alpha. The deal, priced at an undisclosed sum, aims to expand Cohere's reach to government and business clients within the highly regulated European markets.
Cohere CFO Francois Chadwick stated, "We are bringing Aleph Alpha into Cohere, and we are going to merge the two entities." He further emphasized the commitment to "working with European infrastructure… and maintain the sovereignty requirements that are being addressed in Europe".
Schwarz Group, a major shareholder in Aleph Alpha and owner of retail giants Lidl and Kaufland, will participate in Cohere's upcoming funding round with a $600 million investment. This follows Cohere's previous $500 million funding round in August 2025, which valued the company at $6.8 billion. Under the terms of the acquisition, Cohere's shareholders are expected to receive approximately 90% of the combined company's shares, while Aleph Alpha's shareholders will receive around 10%, according to a report by Handelsblatt.
Aleph Alpha was initially positioned as Germany's answer to OpenAI, but has since shifted its focus from developing large language models to specialized AI applications for businesses, mirroring Cohere's strategic direction.
A press conference is scheduled for later today with German Digital Minister Karsten Wildberger, his Canadian counterpart Evan Solomon, and executives from Cohere, Aleph Alpha, and Schwarz Group to discuss the implications of this strategic union. This acquisition marks a pivotal moment for AI development and market penetration in Europe, integrating German expertise with Canadian technological advancement.