Germany’s Aleph Alpha signed a definitive merger agreement with Cohere, the Canadian enterprise AI company on September 16, 2026.
Coming five months after the initial announcement, this deal unifies both companies from the opposite sides of the Atlantic to create a single, transatlantic sovereign AI solution valued at $20 billion USD.
The combined entity will operate under the Cohere name globally, with headquarters in Toronto and Berlin. Meanwhile, Aleph Alpha’s Heidelberg office will transition into a dedicated research centre.
The merger bumps total headcount to more than 1,000.
Prior to their alliance, Cohere and Aleph Alpha separately championed digital sovereignty and flexible architecture. By pairing North American global reach with European research excellence, their combined force creates a formidable sovereign alternative against dominant AI monopolies.
German retail giant Schwarz Group backs the merger with a $600 million USD (€500 million) Series E investment. Its cloud service STACKIT, will also serve as the primary cloud infrastructure for the company’s European operations.
Cross border tech transactions are not new, however. In 2021, U.S. gaming company Electronic Arts completed a $1.2 billion USD acquisition of British game developer Codemasters. In terms of mergers, U.S. cybersecurity firm NortonLifeLock joined Europe’s Avast in 2022.
There has yet to be a transatlantic merger between AI companies, even at a smaller scale. In fact, this deal makes Cohere the first foundational AI developer anchored on both sides of the Atlantic, aligned with the digital sovereignty laws of both jurisdictions.
Though the company will operate under the Cohere name going forward, it’s not a total collapse of Aleph Alpha’s internal structure, as it will maintain a shared presence across both regions, keeping headquarters, research and leadership on both sides.
Cohere’s co-founder, Aidan Gomez, will stay on as CEO, while Ilhan Scheer, currently co-CEO of Aleph Alpha, will assume the role of COO. Samuel Weinbach, co-founder and co-chief Research Officer at Aleph Alpha will oversee research and technological development once the transaction is completed.
“No government or enterprise should have to choose between capable AI and control over their technology. That belief is exactly why we’re joining with Aleph Alpha to enhance the talent, infrastructure and institutional trust behind our mission,” Gomez said of the decision to merge.
For Scheer, Cohere is simply a strategic fit whose global reach and deployment capabilities complement Aleph Alpha’s research expertise.
Building and deploying advanced AI requires immense computing power, research infrastructure, specialist talent, institutional relationships and billions in capital; smaller AI ecosystems rarely have all five. A company might boast cutting-edge research and state backing, yet lack the capital to compete with dominant Chinese and U.S. players, for example.
By merging, Cohere and Aleph Alpha are effectively solving this problem. Cohere contributes its larger international enterprise business, while Aleph Alpha delivers specialised research capabilities and ties to Europe’s regulated sectors.
Their union sets a precedent for AI developers looking to scale through consolidation. As Schwarz Digits CEO Christian Müller stated, “digital sovereignty is not about going it alone, but about strategically joining forces.”
Pending regulatory approval by late 2026, this deal could signal a new era where peer-level AI mergers become just as commonplace as typical foreign acquisitions.
Featured image: via Cohere
