Toronto-based Cohere Inc. is in advanced discussions to merge with Germany’s Aleph Alpha GmbH that would build on a series of agreements to increase artificial intelligence (AI) cooperation between Canada and Germany, according to a media report on Thursday.
The combined entity would have dual headquarters in Canada and Germany, and the German government is set to become an anchor customer, the German newspaper Handelsblatt said, citing sources from the German government and industry.
Cohere declined to comment on the rumoured merger.
“As part of the Canada‑Germany Sovereign Technology Alliance and our international expansion efforts, Cohere meets with companies and institutions across Germany and Europe and continually evaluates strategic opportunities that support our global growth,” a company spokesperson said in an email.
Canada and Germany launched the alliance to boost collaboration between the two countries on AI and other advanced technologies in February. Bilateral cooperation on AI will focus on expanding computing infrastructure — the specialized hardware and software required to train and operate AI models — alongside accelerating AI research and commercialization and supporting AI talent development.
“If leading AI companies from Canada and Germany were to join forces, that would send a very strong signal,” Germany’s Digital Minister Karsten Wildberger told Handelsblatt.
Canada’s AI and Digital Innovation Minister Evan Solomon declined to comment on the potential merger, but a spokesperson said Ottawa and Berlin are “close partners” on AI and sovereign technology.
“Minister Solomon and Minister Wildberger have been working closely together … to deepen cooperation on trusted AI, secure infrastructure and shared strategic priorities,” the spokesperson said. “Our focus is clear: we want Canadian AI companies to grow, compete globally and help build trusted AI capacity with like-minded partners.”
Both Cohere and Aleph Alpha develop large language models (LLMs) and AI solutions for businesses and the public sector. Cohere has signed agreements with the Canadian government, Royal Bank of Canada and BCE Inc. as well as multinationals Oracle Corp. and Dell Technologies Inc. to use its AI.
Cohere in January signed a deal to integrate its technology into ThyssenKrupp Marine Systems GmbH (TKMS) submarines. The German shipbuilder is aiming to win a multibillion-dollar Canadian government contract to build 12 new submarines for the Royal Canadian Navy.
Cohere has been growing its international footprint, opening a Paris office last September to serve Europe and the Middle East. It also launched an Asia Pacific hub based out of Seoul in July 2025 and has 450 employees across seven global offices.