Canadian AI company Cohere announced plans to acquire German AI startup Aleph Alpha as part of its strategy to expand significantly in Europe [1]. The acquisition is not yet finalized and remains subject to regulatory approval, with financial terms undisclosed [1]. As part of the transaction, Schwarz Group, a major backer of Aleph Alpha, intends to invest $600 million in Cohere's upcoming Series E funding round, which is expected to close in 2026 according to a source familiar with the matter [1].
Cohere, founded in 2019, has previously raised $1.6 billion from investors such as Nvidia and AMD, and was valued at $7 billion in 2025 [1]. The company aims to leverage Aleph Alpha's expertise and existing commercial contracts, particularly with the German public sector, including the German ministry for digital affairs and state modernization and the Baden-Württemberg regional government [1]. This move is expected to accelerate Cohere's European expansion and strengthen its offerings in secure, customized AI solutions for highly regulated sectors such as finance, defense, energy, manufacturing, telecommunications, and healthcare [1].
Aidan Gomez, Cohere's cofounder and CEO, emphasized that the partnership would combine the strengths of both companies to deliver sovereign AI solutions globally, highlighting shared Canadian and German values around privacy, security, and responsible innovation [1]. Ilhan Scheer, Co-CEO of Aleph Alpha, stated that the deal would create a counterweight for organizations seeking control over their AI, providing European institutions and enterprises with powerful, controllable AI solutions [1].
Aleph Alpha, also founded in 2019, initially focused on building large language models before shifting to AI applications, and has raised over $600 million in investor and grant funding to date [1]. The acquisition is seen as a strategic move to give Cohere access to Europe's largest economy and to accelerate its regional growth [1].
CONCLUSION
Cohere's planned acquisition of Aleph Alpha, coupled with a $600 million investment from Schwarz Group, marks a significant step in the company's European expansion strategy. The deal positions Cohere to offer sovereign, secure AI solutions to highly regulated sectors and strengthens its presence in Europe's largest economy. Market impact is expected to be high, pending regulatory approval and completion of the transaction.