Canadian artificial intelligence (A.I.) company Cohere is acquiring German firm Aleph Alpha as it looks to expand in Europe.
Both Cohere and Aleph Alpha are privately held concerns and a dollar amount for the acquisition has not been made public.
However, as part of the deal, Schwarz Group, a backer of Aleph Alpha, plans to invest $600 million U.S. in Cohere’s upcoming Series E funding round.
Cohere said that it expects to close that funding round by year’s end.
Founded in 2019, Cohere previously raised $1.6 billion U.S. from investors that include chipmakers Nvidia (NVDA) and AMD (AMD). Cohere was last valued at $7 billion U.S. in 2025.
With the Aleph Alpha deal, Cohere will boost its secure customized A.I. for highly regulated sectors such as government, finance, defense, energy, manufacturing, and telecommunications.
Aleph Alpha has several existing contracts in place with the German government. The company works with the German Ministry for Digital Affairs.
Aleph Alpha was founded in 2019 to build large language models (LLMs) before pivoting to developing A.I. applications. It has raised more than $600 million U.S. in grant funding.
Germany remains Europe’s largest economy.
