Nvidia-backed Cohere acquires German AI startup Aleph Alpha

Cohere, an Nvidia-backed Canadian AI firm, has acquired German AI startup Aleph Alpha in a deal cleared by both the Canadian and German governments. The move accelerates Cohere’s push into sovereign AI solutions for enterprise and government clients, enhancing capabilities around transparency, control and regulatory compliance. The Schwarz Group’s $600 million investment is positioned to support Cohere’s upcoming Series E and signals stronger institutional backing. Market implications include strengthened competition in Europe for cloud and sovereign AI offerings, potential incremental demand for Nvidia’s AI hardware ecosystem, and increased investor attention on AI infrastructure and software players tied to sovereign data needs.