Cohere and Aleph Alpha seal $20 billion merger to serve enterprise AI market
Cohere and Aleph Alpha have signed a definitive merger agreement, creating a combined AI firm headquartered in Toronto and Berlin.
Canada’s Cohere and Germany’s Aleph Alpha announced a definitive merger agreement valued at about $20 billion, with the combined entity retaining the Cohere brand and dual headquarters in Toronto and Berlin. Aleph Alpha’s Heidelberg site will be dedicated to research, and co-chief Ilhan Scheer will assume the role of chief operating officer. The partnership targets enterprises and governments seeking AI models that operate within their own infrastructure and comply with regional rules.
Schwarz Group is contributing €500 million and will provide computing resources through its cloud subsidiary StackIT, which is also building a large German data-centre campus. The move follows a wave of European AI investment, including Mistral’s recent €3 billion raise. Cohere reported $240 million in annual recurring revenue, while Aleph Alpha’s 2023 revenue was under €1 million.
Why it matters
The merger creates a major player focused on secure, on-premise AI solutions for businesses and governments worldwide.
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