As part of the Cohere-Aleph Alpha deal, Aleph Alpha backer Schwarz Group plans to invest $600M in Cohere's Series E, which a source says is set to close in 2026
Canadian AI lab Cohere announced on Friday that it planned to acquire German AI company Aleph Alpha, as it eyed major expansion in Europe.
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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.