{"text":[[{"start":11.85,"text":"Canadian AI start-up Cohere has agreed to take over Germany’s Aleph Alpha in a deal valuing the combined group at about $20bn, as western governments and companies seek alternatives to US Big Tech providers."}],[{"start":26.299999999999997,"text":"The transaction, supported by the German and Canadian governments, will create a transatlantic company focused on “sovereign” AI systems that allow customers to retain control over their data and infrastructure."}],[{"start":38.8,"text":"The merger reflects growing concern outside the US about reliance on Silicon Valley groups such as OpenAI and Google."}],[{"start":46.5,"text":"“Our countries need to come together and collaborate and establish mutual dependencies in order to boost our resilience,” said Cohere’s chief executive Aidan Gomez."}],[{"start":57.1,"text":"The deal also gives an early sign of consolidation in the sector, following deals such as SpaceX’s agreement to acquire coding start-up Cursor."}],[{"start":66.3,"text":"Cohere, the larger partner, will retain its name and operate with dual headquarters in Canada and Germany. Aleph Alpha shareholders will receive one Cohere share for every nine shares held, according to two people familiar with the terms. "}],[{"start":81.05,"text":"Cohere and Aleph Alpha declined to comment on the financial details."}],[{"start":85.3,"text":"Cohere and Aleph Alpha have both focused on corporate and government customers rather than consumers, betting that demand for secure, locally controlled AI will provide a foothold against far larger rivals."}],[{"start":98.75,"text":"The deal will be accompanied by a fresh funding round led by Schwarz Group — the retail company, which owns supermarket Lidl — which said it has committed $600mn, including equity and research funding."}],[{"start":111.35,"text":"The data centres of Schwarz Group’s technology arm Schwarz Digits are expected to provide the infrastructure for deploying Cohere’s AI systems. "}],[{"start":120.25,"text":"The tie-up reflects a broader push by so-called middle powers to collaborate more closely in response to a volatile geopolitical situation dominated by the US and China."}],[{"start":131.05,"text":"Canada’s AI minister Evan Solomon told the FT that “joining forces is powerful” and “super mutually beneficial”. "}],[{"start":139.5,"text":"“We want to make sure that governments and companies have an option between the hyperscalers and the hegemon,” he said. "}],[{"start":147,"text":"A spokesperson for Germany’s digital ministry said the tie-up was of “high geostrategic and economic value”, adding that it would help ensure that AI systems used by public authorities are developed and operated under domestic control."}],[{"start":161.15,"text":"The German government is expected to act as an anchor customer for the combined company. Berlin plans to prioritise sovereign, secure AI solutions in public procurement as it rolls out automation across government services."}],[{"start":174.6,"text":"Cohere, founded in 2019 by former Google researchers, develops large language models for enterprise customers and focuses on deploying systems within clients’ own infrastructure. The group, founded in Toronto in 2019, was valued at $6.8bn in a funding round last year."}],[{"start":193.15,"text":"Aleph Alpha, based in Heidelberg, has built close ties with German industry and government but has struggled to grow at the pace of larger rivals. It was valued at roughly €500mn in a funding round in 2023. "}],[{"start":207.55,"text":"Its former chief executive Jonas Andrulis stepped down earlier this year to found a new AI start-up with consultancy Roland Berger."}],[{"start":216.25,"text":"Schwarz Digits is a key backer of Aleph Alpha with a stake of more than 20 per cent in the company. It is also investing heavily in data centre capacity in Germany, including an €11bn facility designed to support AI workloads near Berlin."}],[{"start":241.05,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1777037687_8712.mp3"}