Cohere Targets European Expansion via Acquisition of Aleph Alpha

Cohere has announced its intention to acquire Aleph Alpha, a strategic move designed to accelerate the Canadian company's expansion into Europe and establish a robust presence in the region's highly regulated sectors. The acquisition is subject to regulatory approval and final closing conditions. The deal centers on the development of 'sovereign AI,' allowing nations and enterprises to maintain control over their data and AI infrastructure without relying on a single provider or jurisdiction. By integrating Aleph Alpha's existing relationships with the German public sector, Cohere aims to provide secure, customized AI solutions for defense, finance, energy, and healthcare. As part of the strategic alignment, the Schwarz Group, a major backer of Aleph Alpha, intends to invest $600 million in Cohere's upcoming Series E round, which is expected to close in 2026. Cohere, which was valued at $7 billion in 2025, has previously secured $1.6 billion in funding from industry giants including Nvidia and AMD. The acquisition provides Cohere with immediate access to Germany's economy and established government contracts, including work with the Baden-Württemberg regional government and the German ministry for digital affairs. This positions the combined entity as a primary alternative for European institutions seeking powerful AI capabilities while maintaining strict jurisdictional control and privacy standards.