Schwarz Group, Germany's retail giant, is investing heavily in digitalization and AI with its new Schwarz Digits Campus in Bad Friedrichshall. Aiming for digital independence for Europe, the company is building data centers and an AI innovation park, challenging US and Chinese tech dominance.
Cohere, the Canadian AI startup valued at $6.8 billion, is acquiring Germany's Aleph Alpha in a deal anchoring valuation at around $20 billion. Schwarz Group (parent of Lidl) will invest €500 million and become a strategic backer, with governments of Canada and Germany supporting the partnership to create a sovereign AI alternative to American players. Cohere reported $240 million ARR in 2025, while Aleph Alpha generated minimal revenue. The combined entity will target regulated industries and the public sector.
Canadian AI lab Cohere plans to acquire German AI company Aleph Alpha, with Schwarz Group investing $600 million in Cohere's Series E round to facilitate global expansion and sovereign AI offerings.
