Cohere, the Canada-based enterprise AI company, announced Friday that it will merge with Aleph Alpha, a Germany-based company that builds AI systems for businesses and governments. The deal, announced in April 2026, has not yet closed.
The newly formed company will be valued at $20 billion, according to the Financial Times. Schwarz Group, one of Aleph Alpha’s top backers, will also invest $600 million in Cohere’s Series E funding round, which is expected to close later this year, CNBC reported.
Both companies operate in the enterprise AI space, building tools for businesses in regulated industries. According to a press release announcing the merger, one stated goal is to offer businesses and governments an alternative to the Silicon Valley players that currently dominate the AI commercial landscape — providing what the companies describe as greater independence and control over data.
The merger also aims to combine talent across Canada and Germany, with the two companies describing the combined entity as a “transatlantic AI powerhouse.” The deal comes amid broader consolidation activity in the AI industry.
Source: TechCrunch