Sovereign AI solutions providers Cohere and Aleph Alpha have agreed to merge to form what they claim will be the first transatlantic sovereign AI company.
The combined company, which will reportedly have a valuation of $20bn, will operate globally as Cohere.
The deal, announced after the companies’ initial intent was disclosed in April, remains subject to final regulatory clearance.
Upon completion, the combined entity will maintain significant operations in both Canada and Germany, with dual headquarters in Berlin and Toronto. Aleph Alpha’s Heidelberg office in Germany will continue as a research centre.
By joining forces, Cohere and Aleph Alpha aim to deliver AI solutions that meet the sovereignty requirements of both jurisdictions, especially for governments and industries with strict regulatory demands.
The joint company will implement safeguards and oversight measures to align with legal frameworks regarding the protection and handling of sensitive data and technology.
The unified company brings together Cohere’s and Aleph Alpha’s combined research capabilities, enterprise-grade solutions, and longstanding partnerships with public sector clients across both continents.
The merged workforce will exceed 1,000 employees across both continents.
Cohere co-founder and CEO Aidan Gomez said: “No government or enterprise should have to choose between capable AI and control over their technology. That belief is exactly why we’re joining forces with Aleph Alpha to enhance the talent, infrastructure and institutional trust behind our mission.”
Cohere plans to strengthen its leadership team, with Aleph Alpha’s co-CEO Ilhan Scheer set to become chief operating officer and lead global operations once the deal closes.
Scheer said: “Over the past 12 months, we have sharpened our focus on specialised language models for governments and regulated industries. 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 organisations worldwide. This strengthens our ability to deliver on our mission: giving organisations control over the AI they rely on.”
Founded in 2019, Cohere develops foundation models and end-to-end AI products, supporting integration and deployment across cloud, on-premises, and air-gapped environments.
The company has raised around $1.6bn from a range of technology and institutional investors, including Nvidia, AMD Ventures, Salesforce Ventures, and notable AI researchers.
Founded in the same year, Aleph Alpha specialises in sovereign, human-centric AI solutions, employing about 200 staff across Germany.
The new Cohere will continue its partnership with the companies of Schwarz Group to deliver sovereign AI solutions on STACKIT, the sovereign cloud platform from Schwarz Digits, which supports Europe’s digital sovereignty initiatives.
Schwarz Group has committed an investment of €500m ($573.2m) in the new Cohere.
