Cohere to acquire German AI company Aleph Alpha as it looks to expand in Europe

Canadian AI lab Cohere announced on Friday that it planned to acquire German AI company Aleph Alpha, as it eyed major expansion in Europe.

As part of the deal, Schwarz Group — a key backer of Aleph Alpha — plans to invest $600 million in Cohere’s upcoming Series E round. The company expects to close that round sometime in 2026, a source familiar with Cohere’s plans told CNBC.

The deal hasn’t closed, and the acquisition is subject to regulatory conditions being met. Financial terms of the deal have not been disclosed.

Founded in 2019, Cohere has already raised $1.6 billion from investors including Nvidia

and AMD