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Cohere announced that it signed a definitive business combination agreement with Germany’s Aleph Alpha on September 16, 2026, to establish a transatlantic sovereign AI provider operating globally under the Cohere name. The combined entity will maintain dual headquarters in Toronto and Berlin while converting Aleph Alpha’s Heidelberg location into a dedicated research center, Cohere said in a statement on its website. The move follows an initial disclosure of the planned tie-up in April and will expand the workforce to more than 1,000 employees across North America and Europe once completed. The transaction remains subject to regulatory approvals and is expected to close later this year.
Aleph Alpha co-chief Ilhan Scheer will assume the role of chief operating officer at the merged company, according to details released by Cohere. Samuel Weinbach, who served as co-founder and co-chief research officer at Aleph Alpha, will become chief research officer for Cohere to advance its technology development. Aidan Gomez will continue to lead the organization as chief executive officer, with the structure preserving leadership roles in both Canada and Germany.
Schwarz Group, the German retail conglomerate that owns Lidl and holds a stake in Aleph Alpha, has committed to investing €500 million in the combined business, Reuters reported. The investor also plans to direct up to €13 billion toward compute infrastructure through its STACKIT platform as part of a broader partnership. The arrangement builds on earlier reports that pegged the combined valuation near $20 billion when the partnership was first outlined in April.
Cohere’s statement described the combination as creating the first transatlantic sovereign AI solution that draws on research excellence from Aleph Alpha and enterprise solutions from its own operations. The companies have targeted sectors including government, defense, healthcare and finance where data control and regulatory compliance carry particular weight. Reuters noted that the deal arrives as European AI firms draw increased investment amid efforts to reduce dependence on U.S.-based providers.
Baker McKenzie advised Cohere on the business combination, the law firm said in an announcement distributed from its newsroom. The advisory work covered the cross-border aspects of the transaction between the Canadian and German entities. Legal teams supported negotiations that produced the definitive agreement now pending regulatory review in multiple jurisdictions.
Cohere reported $240 million in annual recurring revenue last year, according to figures cited in coverage by Reuters and other outlets. Aleph Alpha had focused on specialized applications for business and public sector clients after stepping back from general large language model development. The merged platform will emphasize secure, governable AI systems that meet demands from organizations wary of outsourcing control to a single jurisdiction or provider.
