Canada-based enterprise AI company Cohere announced Friday that it will merge with German enterprise AI firm Aleph Alpha, forming a combined entity valued at $20 billion, according to the Financial Times.
The deal has not yet closed. Alongside the merger, Schwarz Group — one of Aleph Alpha’s leading backers — will invest $600 million in Cohere’s Series E funding round, which is expected to close later in 2026, CNBC reported.
The two companies span opposite sides of the Atlantic, with Cohere headquartered in Canada and Aleph Alpha based in Germany. Their joint press release described the union as a “transatlantic AI powerhouse,” aiming to combine talent from both countries.
According to the announcement, a central goal of the merger is to offer businesses and governments an alternative to the handful of Silicon Valley companies that currently dominate the commercial AI landscape — one that provides greater independence and control over data.
Source: TechCrunch