Cohere to Acquire Aleph Alpha in European Expansion Plan

Cohere announced plans to acquire German AI company Aleph Alpha, creating what it described as a transatlantic AI powerhouse, reports TechCrunch. The combined company will be valued at around 20 billion dollars and will maintain headquarters in Toronto and Germany.

As part of the deal, Aleph Alpha investor Schwarz Group will invest 600 million dollars in Cohere’s upcoming Series E funding round, expected to close later this year. The transaction remains subject to shareholder and regulatory approval in Germany and the European Union.

Cohere said the acquisition aims to expand its operations across Europe while focusing on sovereign AI solutions that allow governments and enterprises to retain control of their data. The combined company will serve sectors such as finance, defense, energy, telecommunications, and healthcare.

Founded in 2019, Cohere has raised over 1.6 billion dollars from investors including Nvidia and AMD. Aleph Alpha, also founded in 2019, has established partnerships with the German public sector and raised more than 600 million dollars through investments and grants.