"Cohere is taking over Germany-based Aleph Alpha with support from Schwarz Group, aiming to offer a sovereign alternative to enterprises in an AI landscape dominated by American players."
"Schwarz Group will become a strategic backer of the new entity with €500 million in structured financing, expecting to utilize its STACKIT sovereign cloud service."
"Cohere reported $240 million in annual recurring revenue in 2025, while Aleph Alpha had generated little revenue and significant losses, leading investors to bet on improved odds through the merger."
Cohere is acquiring Germany-based Aleph Alpha with support from Schwarz Group to establish a sovereign AI alternative in Europe. Cohere, valued at $6.8 billion, will lead the new entity, which requires approval from authorities and shareholders. Schwarz Group is investing €500 million and will support the new entity with its STACKIT cloud service. Despite Cohere's $240 million annual revenue, Aleph Alpha has struggled financially. Investors believe the merger will enhance their market position against dominant American AI firms.
Read at TechCrunch
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