Canadian artificial intelligence (AI) startup Cohere has agreed to acquire its German counterpart Aleph Alpha. The companies announced the deal today but did not disclose the purchase price. According to sources cited by the Financial Times, the combined group’s value is expected to be around $20 billion (nearly 420 billion CZK). The transaction comes at a time when Western countries are seeking to reduce their dependence on large American technology companies, AFP reported.
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Europe Builds an AI Champion
“The goal is to offer and secure an independent and sovereign alternative for businesses and governments in an era of growing AI concentration,” the companies stated. According to German Minister for Digitalization Karsten Wildberger, the merger will create a “global champion” in the field of AI.
The Schwarz Group, a retail conglomerate, is an investor in Aleph Alpha. It is the parent company of the Lidl and Kaufland retail chains but also offers cloud services. The Schwarz Group is now investing $600 million in Cohere, Reuters reports.
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The AI boom is changing the rules of the game
The artificial intelligence industry has been experiencing rapid growth since 2022. Among the dominant players in this sector are the American company OpenAI, which developed the popular chat system ChatGPT, and its Chinese competitor Deepseek.
In 2022, OpenAI made its ChatGPT system available to the public for free. The system quickly gained popularity and significantly contributed to a wave of interest in artificial intelligence among the public, the media, and investors.
Source: ČTK
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