Sovereign AI for the World: Cohere and Aleph Alpha to Form Global AI Powerhouse as Nations and Enterprises Demand Control Over Their Technology

The companies of Schwarz Group Commit $600M (€500M) in Structured Financing to Further Accelerate Germany-Canada Sovereign AI Venture

TORONTO & HEIDELBERG, Germany--(BUSINESS WIRE)--Cohere and Aleph Alpha, two trusted sovereign AI providers for governments and regulated industries, today announce their plan to join forces. This transatlantic alliance would combine Cohere’s global AI scale with Aleph Alpha’s strong research excellence and deep institutional relationships, forging a globally competitive AI champion backed by their Canadian and German ecosystems. The initiative reflects a shared vision: To provide the world with an independent, enterprise-grade sovereign alternative in an era of growing AI concentration and to ensure that organizations do not need to relinquish control over their own AI stack.

The planned combined entity¹ will function as a transatlantic AI powerhouse, anchored in Germany and Canada, empowering organizations to choose, deploy and govern AI according to local laws, cultural contexts, and institutional requirements. By pooling top-tier engineering talent and computational resources across two G7 nations, the partnership aims to significantly accelerate the development of next-generation frontier models and systems while providing a secure alternative to dependence on any single vendor or infrastructure stack.

The market for AI services is projected to surpass $1 trillion annually, with sovereign AI needs representing nearly $600B of that total (McKinsey, March 2026). The partnership uniquely bridges the gap between these segments with its sovereign-first approach, capturing the critical intersection where sovereignty requirements meet broad enterprise AI adoption.

“Combining the strengths of Cohere and Aleph Alpha accelerates our global expansion and advances our mission to deliver sovereign AI to nations around the world,” said Aidan Gomez, Co-founder and CEO, Cohere. “Organizations globally are demanding uncompromising control over their AI stack. This transatlantic partnership unlocks the massive scale, robust infrastructure, and world-class R&D talent required to meet that demand. Built on the bedrock of shared Canadian and German values—where privacy, security, and responsible innovation are paramount—we are uniquely positioned to be the world's trusted AI partner. Together, we will give enterprises and governments across Canada, Europe, and the world the technology to move from exploration to rapid, secure implementation, with the absolute certainty that their data remains their own.”

Through the planned deal, Cohere and Aleph Alpha aim to deliver a secure alternative for customized AI in highly-regulated sectors - including the public sector, finance, defense, energy, manufacturing, telecommunications, and healthcare. Aleph Alpha’s experience in deploying AI in long-standing customer relationships provides an important foundation of this sovereign offering. As part of this partnership, the combined entity will partner with the companies of Schwarz Group, an international leader in the retail industry, to deploy a sovereign offering on its cloud service STACKIT.

“Aleph Alpha is in a unique position in Europe,” said Ilhan Scheer, Co-CEO of Aleph Alpha. “We develop specialized large language models for Europe without compromising on Sovereignty, Transparency and Regulatory Compliance. By living this responsibility, we serve as a trusted and strategic partner to public sector and enterprise customers in Europe. Together with Cohere, we are building a real counterweight for organizations that refuse to outsource control over their AI to a single provider or jurisdiction, giving European institutions and enterprises access to powerful, yet controllable AI they can truly own.”

Furthermore, the companies of Schwarz Group intend to back the upcoming Series E funding of Cohere as lead investor with a $600M (€500M) structured financing commitment. The round is already attracting strong interest from the world’s leading investors who recognize the necessity of an independent global AI powerhouse.

In a joint statement, Rolf Schumann and Christian Müller, Co-CEOs of Schwarz Digits, said: “With this investment, the companies of Schwarz Group position themselves as lead investors for digital sovereignty and infrastructure. Building this infrastructure is a strategic necessity to help shape the AI revolution based on values such as trust, fairness, and responsibility. The establishment of STACKIT, Schwarz Digits’ sovereign cloud infrastructure, as the technical backbone of this transatlantic AI initiative empowers organizations to strengthen their digital independence and maintain control over their data. This is true leadership in digital sovereignty.”

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^1 Subject to approval by Aleph Alpha shareholders as well as competent authorities

About Cohere

Cohere, founded 2019, is a security-first enterprise AI leader building foundation models and end-to-end products to solve business problems. We partner with organizations to deliver seamless integration, customization, and user-friendly solutions. Our all-in-one platform provides maximum security, privacy, and deployment flexibility across clouds, private environments, and on-premises. Headquartered globally in Toronto, San Francisco, and Germany, Cohere operates additional offices in London, New York, Montreal, Paris, and Seoul, serving customers worldwide.

The company has raised ~$1.6BUSD from strategic tech investors (Nvidia, AMD Ventures, Salesforce Ventures, Oracle, Cisco), institutional investors (Radical Ventures, Inovia Capital, PSP Investments, HOOPP, BDC, Nexxus), and AI pioneers including Geoffrey Hinton, Fei-Fei Li, Pieter Abbeel, and Raquel Urtasun. For more information, visit Cohere.

About Aleph Alpha

Aleph Alpha was founded in 2019 with the mission to research and build sovereign, human-centric AI for a better world. With an international team of scientists and engineers, the company researches and develops Specialized Large Language Models. Its co-created solutions are the first choice for companies and government institutions that want to maintain sovereignty, secure data, and develop trustworthy applications. With its Headquarters in Heidelberg, Aleph Alpha employs some 200 talent across four locations in Germany.

About Schwarz Digits

Schwarz Digits is the IT and digital division of Schwarz Group and offers convincing digital products and services that meet the high German data protection standards. With the aim of achieving the greatest possible digital sovereignty, Schwarz Digits provides the IT infrastructure and solutions for the extensive ecosystem of Schwarz Group's companies and develops it with a focus on future readiness. Schwarz Digits' sovereign core services include Cloud, Cyber Security, Data and AI, Communication and Workspace. In addition, Schwarz Digits creates optimal conditions for the development of trend-setting innovations for end customers, companies and public sector organizations.

Further information can be found at www.schwarz-digits.de.

About Schwarz Group

Schwarz Group is an international leader in the retail industry with about 14,200 stores and 595,000 employees. In the 2024 fiscal year, the companies of Schwarz Group generated a total sales volume of 175.4 billion euros. Their unique ecosystem lets them cover the full value cycle: from production and retail to recycling and digitalization. They create solutions to make lives safer, healthier and more sustainable, both right now and in the future – they act ahead. Lidl and Kaufland form the pillars of the food retail market and are an integral part of their customers’ daily lives in 32 countries. Many of the own-brand products and much of the sustainable packaging come directly from Schwarz Produktion. Through its recycling management solutions, the environmental service provider PreZero promotes a functional circular economy and is investing in a clean future. The IT and digital division, Schwarz Digits, provides compelling digital products and services that meet the high German data protection standards, thus ensuring the maximum degree of digital sovereignty. As a partner service provider, Schwarz Corporate Solutions assists the companies of Schwarz Group with all matters related to administration, HR, operational activities and everything in between.

For further information can be found at www.gruppe.schwarz.