Just months after founder Jonas Andrulis had to give up the CEO role, Canadian AI company Cohere is taking over Aleph Alpha - once hailed as Germany's answer to OpenAI. The Schwarz Group is putting $600 million into the deal.
Canadian AI company Cohere has agreed to acquire Aleph Alpha in a deal that values the combined company at roughly $20 billion. Cohere, the larger of the two, keeps its name and will run with dual headquarters in Canada and Germany. Neither company said whether the Aleph Alpha brand will survive in any form. The deal still needs approval from Aleph Alpha shareholders and regulators.
According to CNBC, Aleph Alpha shareholders will get one Cohere share for every nine shares they hold. The Schwarz Group, the parent of Lidl and owner of more than 20 percent of Aleph Alpha, is leading a $600 million funding round. Schwarz Digits' cloud platform STACKIT will host Cohere's AI systems.
The deal centers on "sovereign AI" - systems where customers keep control over their own data and infrastructure. Both companies sell to enterprise and government clients in regulated industries like finance, defense, and healthcare. Aleph Alpha brings existing contracts with Germany's digital ministry and the state government of Baden-Württemberg, which a source familiar with the plans called a major draw for Cohere.
