Cohere takes over Aleph Alpha shortly after the German startup ousted its original founder

Cohere is acquiring German startup Aleph Alpha in a deal valuing the combined company at about $20 billion.

Schwarz Group is backing the transaction with a $600 million funding round, and STACKIT will host Cohere’s systems.

The merged company will keep the Cohere name and operate from Canada and Germany, focused on enterprise and government clients.

The deal still needs shareholder and regulatory approval, and it underscores the push for sovereign AI alternatives to U.S. hyperscalers.