German AI Startups Aleph Alpha and Cohere Merge in $20 B Deal Amid Political Turmoil

Aleph Alpha, a Heidelberg‑based AI firm, and Canadian company Cohere have announced a $20 billion merger aimed at becoming a global AI leader. The new entity plans to reduce Germany’s and Canada’s reliance on U. S. technology by developing independent language‑model capabilities. The deal follows a broader push by European tech firms to secure sovereign AI infrastructure. Meanwhile, Chancellor Friedrich Merz faces a political crisis as coalition partners clash over how to ease the country’s high fuel‑price burden. The SPD’s finance minister, Lars Klingbeil, calls for a clean counter‑financing approach, while Merz pushes for direct cash transfers to citizens. The merger’s timing underscores the urgency for European tech autonomy as domestic politics seek immediate relief measures.