Two prominent artificial intelligence firms are reportedly exploring a major business combination that has garnered government backing, according to a German business publication.
Handelsblatt newspaper reported Thursday evening that Canadian AI company Cohere and German firm Aleph Alpha have entered into discussions about merging their operations, with Berlin officials expressing enthusiasm for the potential partnership.
According to the publication’s government and industry sources, German officials are prepared to serve as a significant client for the combined entity as part of efforts to expand digital government services.
German Digital Minister Karsten Wildberger expressed optimism about the potential partnership to the newspaper, stating: “If leading AI companies from Canada and Germany were to join forces that would send a very strong signal.” The minister also noted that the two nations already maintain strong cooperation in artificial intelligence development.
When contacted for comment, Aleph Alpha acknowledged that exploring strategic partnerships is routine within the AI sector and emphasized the company maintains its own independent business strategy, but declined to provide additional details about the reported discussions.
Cohere has not yet responded to requests for comment regarding the merger talks.
The newspaper indicated that negotiations began in early 2024 and have progressed significantly, with preliminary plans calling for the merged company to maintain headquarters in both nations.
