Cohere Snaps Up Aleph Alpha, Lands $600M Backing from Schwarz
Canadian AI lab Cohere is acquiring German AI firm Aleph Alpha and scoring a massive $600M investment from Schwarz Group.
Cohere is making a big European play. The Canadian AI company announced plans to acquire Aleph Alpha, a German AI startup, in a move that signals serious ambitions across the Atlantic.
The deal comes with a hefty sweetener. Schwarz Group — the retail giant that previously backed Aleph Alpha — plans to pour $600 million into Cohere's Series E round. That funding round is expected to close in 2026, according to a source familiar with the matter.
For Cohere, this is a two-for-one: it gets Aleph Alpha's European footprint and talent, plus a massive capital injection from one of Germany's biggest corporate players. Schwarz Group operates Lidl and Kaufland, giving Cohere a direct line into enterprise AI adoption at scale.
The acquisition positions Cohere as a serious contender in the European AI market, where regulatory alignment and data sovereignty remain top priorities for enterprise customers.