Senior figures at Cohere and Aleph Alpha have shared new details on the proposed merger between the two companies, which aims to create the first transatlantic sovereign AI giant.
The deal was first announced in April with the support of the German and Canadian governments. It's subject to final regulatory approvals, and is expected to close later this year.
Under the terms of the merger, the new combined firm will operate globally as Cohere, with more than 1,000 staff, and will be headquartered in Berlin and Toronto. Aleph Alpha’s current Heidelberg office, meanwhile, will become a research center.
The combined valuation of the firm will be around $20 billion, according to the duo,
Cohere said it will become the first foundational model developer with headquarters on both sides of the Atlantic to deliver AI solutions aligned with the sovereignty requirements of both Canada and Germany.
“No government or enterprise should have to choose between capable AI and control over their technology,” said Aidan Gomez, co-founder and CEO of Cohere.
“That belief is exactly why we’re joining forces with Aleph Alpha to enhance the talent, infrastructure, and institutional trust behind our mission. Together, we’ll move faster to meet the rising global demand for frontier AI that’s powerful enough to compete, but secure and governable enough to trust.”
Cohere eyes closer ties with Schwarz Group
Cohere will also expand on its existing partnership with Schwarz Group to deliver sovereign AI on Stackit, Schwarz Digits' sovereign cloud service. Schwarz is also believed to be investing around $600 million in the new entity.
“Digital sovereignty is not about going it alone, but about strategically joining forces. This transatlantic alliance represents a massive leap forward accelerating the development of an independent AI infrastructure," said Schwarz Digits CEO Christian Müller.
"With the goal of establishing Stackit as the technical backbone for sovereign AI solutions, we ensure organizations do not have to choose between high performance and digital independence. By partnering with those who uncompromisingly share our strict values and data security standards, we are sustainably strengthening the sovereign digital future of Europe and Canada.”
Once the deal closes, Ilhan Scheer, currently co-CEO of Aleph Alpha, will become Cohere's COO, leading the company's global operating model and organizational scaling.
“Over the past twelve months, we have sharpened our focus on specialized language models for governments and regulated industries," he said.
"Cohere is a strong strategic fit for this work, bringing global reach and deployment capabilities that complement our research expertise. Together, we can bring what our team has built to more organizations worldwide. This strengthens our ability to deliver on our mission: giving organizations control over the AI they rely on.”
Meanwhile, Samuel Weinbach, co-founder and co-chief research officer of Aleph Alpha, will become chief research officer of Cohere.
The deal was first announced in April with the support of the German and Canadian governments. It's subject to final regulatory approvals, and is expected to close later this year.
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