Cohere, the Canada-based enterprise AI company, announced Friday that it will merge with Aleph Alpha, a Germany-based enterprise AI firm, in a deal that would value the newly formed company at $20 billion, according to the Financial Times.
The deal has not yet closed. As part of the transaction, Schwarz Group — one of Aleph Alpha’s top backers — will invest $600 million in Cohere’s Series E funding round, which is expected to close later in 2026, CNBC reported.
According to a press release announcing the merger, one stated goal of the union is to offer businesses and governments an alternative to the Silicon Valley companies that currently dominate the commercial AI landscape. The combined company aims to give those customers greater independence and control over their data, and to draw on talent across both Canada and Germany — a combination the companies described as a “transatlantic AI powerhouse.”
The announcement comes amid a period of active consolidation in the AI industry.
Source: TechCrunch