Cohere and Aleph Alpha have signed a merger agreement valued at $20 billion.
SiliconANGLE reported on Sept. 16 local time that the deal formalises the integration plan the two companies announced in April.
Pending regulatory approval, the combined company will operate under the Cohere brand. It will keep headquarters in Berlin and Toronto and use Aleph Alpha’s Heidelberg, Germany headquarters as an AI research centre.
Toronto-based Cohere develops AI models for enterprises. Its flagship product is the open-source large language model Command series. It also provides algorithms specialised in translation and search. Its recently introduced Parse converts documents into a format that AI agents can process easily. Cohere sells APIs that provide access to its models and also runs the AI productivity service North. Its revenue last year was $240 million.
Aleph Alpha has developed small language models for enterprises and government agencies in Germany. Last year it released a library that can double inference performance for large language models. It recently introduced a new approach that reduces AI hallucinations in retrieval-augmented generation systems.
Chi-gyu Hwang
delight@d-today.co.kr