Cohere is taking over German company Aleph Alpha to build a Canadian-German AI company focused on sovereign systems for enterprise use. The transaction is backed by Schwarz Group with €500 million in structured financing and aims to give governments and heavily regulated industries an alternative to the major U.S. AI players.
Cohere will lead the merged company, which is reportedly valued at nearly $20 billion despite Aleph Alpha’s weak revenue situation. Through the merger, Cohere gains access to European talent, language expertise, and stronger entry into privacy-sensitive markets. It remains unclear whether European customers will see the Canadian-German setup as truly sovereign, especially if the company eventually goes public.