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Cohere to Acquire Germany’s Aleph Alpha, Backed by $600 Million From Schwarz Group

The buyout targets rising demand for sovereign AI that lets European customers keep control over data on local systems.

Overview

  • Cohere said it will buy Aleph Alpha and merge the two companies, with completion subject to regulatory approval.
  • Schwarz Group, the owner of Lidl and Kaufland and a major Aleph Alpha investor, pledged $600 million to Cohere’s next funding round.
  • Cohere framed the deal as a push to deliver secure, controllable AI for governments and tightly regulated industries in Europe.
  • Aleph Alpha moved from building general large language models to tailored enterprise tools and works with Germany’s digital ministry and Baden‑Württemberg.
  • Handelsblatt reported a roughly 90% stake for Cohere shareholders and 10% for Aleph Alpha holders in the combined firm, which the companies have not confirmed.