Cohere, the Canadian enterprise AI unicorn, announced a merger with Germany-based AI firm Aleph Alpha. The deal will value the combined company at $20 billion, according to the FT. Schwarz Group, a major backer of Aleph Alpha, will invest $600 million in Cohere’s Series E round, which is anticipated to close this year, CNBC reported.
Silicon Valley continues to lead the AI market, marked by consolidation activities. A press release stated the merger aims to provide businesses and governments an alternative to dominant tech firms, offering more control over their data. The combination seeks to merge talent from Canada and Germany, forming a “transatlantic AI powerhouse.”