Cohere merges with Aleph Alpha in $20B deal to build 'transatlantic AI powerhouse'

Cohere, the Canada-based enterprise AI unicorn, announced Friday that it would merge with Germany-based enterprise AI company Aleph Alpha. The deal, which has yet to close, will value the newly formed company at $20 billion, the Financial Times reported. Schwarz Group, one of Aleph Alpha's top backers, will also invest $600 million in Cohere's Series E round, which is expected to close later this year, CNBC reported. A press release announcing the union said one goal of the merger was to give businesses and governments an alternative to dominant U.S. tech players, one that offers greater independence and control over their data. It also hopes to combine the talent pool across Canada and Germany to create what it called a "transatlantic AI powerhouse." The deal adds to a wave of consolidation in the AI commercial landscape as a handful of Silicon Valley players continue to dominate the market.