Canadian artificial intelligence company Cohere has announced plans to acquire German AI startup Aleph Alpha, marking a major step in its push to strengthen its presence across Europe. The deal, which is still subject to regulatory approval and has not yet closed, underscores the growing competition among global AI players to secure regional dominance in the fast-evolving industry.
As part of the agreement, Schwarz Group—one of Aleph Alpha’s key backers—will invest $600 million in Cohere’s upcoming Series E funding round, expected to close in 2026. While financial terms of the acquisition were not disclosed, Cohere has already raised around $1.6 billion from major investors, including Nvidia and AMD, and was valued at $7 billion in 2025.
Cohere CEO Aidan Gomez described the planned acquisition as a strategic alignment of shared values and ambitions, emphasizing a focus on “sovereign AI” for governments and enterprises. He noted that combining both companies’ strengths would help accelerate global expansion while prioritizing privacy, security, and responsible AI development.
The deal is expected to significantly enhance Cohere’s ability to serve highly regulated industries such as government, defense, finance, energy, healthcare, and telecommunications. Aleph Alpha’s experience working with public sector clients in Germany, including the federal ministry for digital affairs and state governments, is seen as a key strategic advantage.
For Cohere, the acquisition also opens direct access to Europe’s largest economy, fast-tracking its regional expansion strategy. Aleph Alpha co-CEO Ilhan Scheer said the partnership would give European institutions more control over advanced AI systems, offering an alternative to reliance on a single global provider while maintaining technological sovereignty.