Canadian startup Cohere is merging with Germany’s Aleph Alpha to form a transatlantic AI entity. The combined company will operate under the Cohere brand with dual headquarters in Canada and Germany.
Germany’s Schwarz Group, the owner of Lidl, is providing $600 million in lead financing. This investment represents a €500 million commitment for Cohere’s upcoming Series E funding round.
The partnership focuses on sovereign AI for governments and regulated sectors like finance, defense, and healthcare. Both the German and Canadian governments are providing official backing for the deal. The entity positions itself as a strategic alternative to dominant US-based AI providers.