Aleph Alpha and Cohere have struck a $20bn merger to create a transatlantic AI powerhouse, combining Canada’s private LLM expertise with Germany’s public-sector AI relationships. The deal, backed by German and Canadian governments, aims to build sovereign AI systems independent of US giants like OpenAI and Google. Cohere will retain its brand and operate dual HQs in Toronto and Berlin, while Aleph Alpha—a former model-maker turned consultancy—brings government ties and enterprise contracts. Schwarz Digits, led by Lidl parent Schwarz Group, will inject $600m for equity and infrastructure, targeting Germany’s data center growth.