Cohere acquires Aleph Alpha with €500M Schwarz Group backing
Cohere, a Canadian AI startup, is set to acquire Aleph Alpha, a company based in Germany, with financing of €500 million ($600 million) from Schwarz Group, which is also spearheading Cohere's Series E funding round. This acquisition aims to establish a sovereign AI solution for European businesses. With a valuation of $6.8 billion, Cohere will oversee the new entity, focusing on regulated sectors and public services. Schwarz Group will support this initiative, utilizing its sovereign cloud service, STACKIT. Despite concerns regarding combined revenue, Cohere's valuation remains around $20 billion. Aleph Alpha, known for its PhariaAI suite, has faced strategic hurdles following the exit of cofounder Jonas Andrulis. This acquisition reflects the increasing collaboration between Canada and Germany in sovereign AI.
Key facts
- Cohere is acquiring Aleph Alpha with Schwarz Group backing.
- Schwarz Group provides €500 million in structured financing.
- Cohere leads the new entity; valuation set at ~$20 billion.
- Targets highly-regulated industries and public sector.
- Aleph Alpha developed PhariaAI suite for European enterprises.
- Cohere reported $240 million ARR in 2025.
- Aleph Alpha had little revenue and significant losses.
- Canada and Germany launched a Sovereign Technology Alliance.
Entities
Institutions
- Cohere
- Aleph Alpha
- Schwarz Group
- Lidl
- OpenAI
- STACKIT
- Schwarz Digits
- Handelsblatt
- xAI
- Mistral AI
- Cursor
- SpaceX
- TechCrunch Disrupt
- Sovereign Technology Alliance
Locations
- Canada
- Germany
- United States
- Europe
- France