Canadian AI company Cohere is acquiring German large language model startup Aleph Alpha in a deal valuing the combined entity at approximately $20 billion, backed by €500 million in structured financing from German retail conglomerate Schwarz Group, which will also lead Cohere’s new Series E round.
Cohere chief executive Aidan Gomez described the combination as complementary, with Aleph Alpha’s expertise in small language models and European languages pairing with Cohere’s broader focus on large language models. The merged entity will target heavily regulated industries including defence, finance, and healthcare, as well as European public sector organisations seeking alternatives to US-controlled AI infrastructure.
Aleph Alpha, which had struggled commercially following a strategic pivot away from frontier model development and the departure of co-founder Jonas Andrulis, brings a team of 250 people to the deal. The acquisition requires regulatory and shareholder approval.
