Cohere and Aleph Alpha signed a definitive merger agreement that will create a combined business operating under the Cohere name, with dual headquarters in Toronto and Berlin. Aleph Alpha’s Heidelberg office will focus on research, while its co-chief Ilhan Scheer will become Cohere’s chief operating officer. The deal, first disclosed in April, was valued at around $20 billion (€17.34 billion) at the time, though updated financial terms were not disclosed and regulatory approvals remain required. Schwarz Group is investing €500 million and will provide computing capacity through StackIT. The transaction combines Cohere’s Command family of open-source AI models, designed to run within customers’ own infrastructure, with Aleph Alpha’s focus on AI integration software for governments and businesses. Cohere reported $240 million in annual recurring revenue last year, compared with Aleph Alpha’s less than 1 million euros in revenue in 2023. The agreement comes amid increased investment in European AI companies, including Mistral’s €3 billion fundraising at a valuation above €21 billion.