Cohere and Aleph Alpha Sign Combination Agreement, Await Regulatory Approval
Cohere and Aleph Alpha have signed a definitive business combination agreement. The combined company is expected to operate under the Cohere brand, but the transaction has not yet closed.
Cohere and Aleph Alpha’s combination agreement was signed on September 16, 2026. The Canadian AI model developer and German company focused on deployments for the public sector and regulated industries announced a definitive business combination agreement. However, the transaction remains subject to final regulatory approvals, and the companies expect it to close later in 2026.
Cohere and Aleph Alpha to Combine Under the Cohere Brand
After the transaction closes, the combined company is expected to operate globally under the Cohere brand. It is planned to have dual headquarters in Toronto and Berlin, while Aleph Alpha’s Heidelberg office is expected to remain a research center.
Planned leadership changes have also been announced. Ilhan Scheer is expected to become chief operating officer (COO) after the transaction is completed. Samuel Weinbach is expected to join as head of research, or Chief Research Officer.
The companies are thus combining the development of enterprise AI models with Aleph Alpha’s German base, which also focuses on customers in the public sector and regulated areas. The emerging company is targeting demand for sovereign AI, in which data and infrastructure are operated under local control.
Combination Value Was Not Newly Confirmed at Signing
Reuters cites an approximately $20 billion valuation for the combination in connection with the agreement. However, this figure comes from an April announcement. No new financial terms or updated valuation were disclosed when the definitive agreement was signed in September.
It is therefore not accurate to describe $20 billion as the currently confirmed value of the transaction. Nor can this be called a completed merger: a definitive agreement has been signed, and the process is awaiting decisions from the relevant regulators.
Schwarz Group Plans Infrastructure Investments
According to Reuters, Schwarz Group is expected to invest €500 million in the new entity. The group also plans to invest €11 billion to €13 billion in a German data campus that is expected to provide computing capacity through the STACKIT service.
These two items should be distinguished. The €500 million investment is directed to the new entity, while the €11 billion to €13 billion relates to Schwarz Group’s planned data campus, not direct financing of the Cohere and Aleph Alpha business combination itself.
What Happens Next
The next step will be the regulatory approvals required to formally close the transaction. The final financial terms and any updated valuation also remain open, should the companies disclose them.
After closing, the specific integration and product plans of the combined company will be important to watch. Further announcements may also clarify how the company plans to use the computing capacity provided through STACKIT.
Sources
- Cohere – agreement announcement – Confirms the signing of the definitive agreement, its dependence on regulatory approvals, the planned Cohere brand, headquarters and leadership changes.
- Reuters – Confirms the signing of the agreement and states that the $20 billion valuation comes from April, with no new terms disclosed; distinguishes Schwarz Group’s investment from the planned data campus.
Verified and updated: 09/17/2026 15:24
