Business · Companies · 10 hrs ago
Schwarz Group leads major investment in AI company Cohere
Cohere is raising billions to expand its AI business in a funding round led by Germany’s Schwarz Group.
The Canadian-German company is seeking up to 7 billion Canadian dollars, at a stated valuation of about 35.7 billion Canadian dollars.
Schwarz Group, which owns Lidl and Kaufland, is investing as part of its push to build its digital and cloud business.
Cohere recently joined forces with Heidelberg-based Aleph Alpha, in a deal described as a takeover by Cohere.
It focuses on AI for businesses and governments, rather than consumer products, and says its systems can run without relying on major US cloud providers.
That can appeal to customers who need tight control over their data, especially in regulated industries.
Schwarz Group plans to run Cohere’s models on its STACKIT cloud, while the new funding will support development and expansion; observers see a possible future stock-market listing.
The Schwarz Group is leading Cohere’s Series E funding round, which could raise up to 7 billion Canadian dollars.
The round values the Canadian-German AI company at about 35.7 billion Canadian dollars.
Cohere plans to use the capital to expand its model development, infrastructure and global operations.
The company focuses on business and government customers, with AI designed to run in private or isolated environments.
The investment also supports Schwarz Group’s plan to integrate Cohere models into its STACKIT cloud infrastructure.
- Who
- The Schwarz Group is leading the funding round for Cohere, a Canadian-German AI company.
- What
- Cohere is seeking up to 7 billion Canadian dollars in a Series E round, valuing the company at about 35.7 billion Canadian dollars.
- When
- The articles were published on October 29, 2026.
- Where
- Cohere is based in Toronto and Berlin, with Heidelberg continuing as a research and development site.
- Why
- Cohere plans to fund model development, infrastructure and global expansion. Schwarz Group aims to integrate its models into its STACKIT cloud.
This story does not have two clearly opposing sides.
Cohere strengthened its market position through strategic acquisitions, including its combination with Aleph Alpha.
The articles reported that Cohere had completed a funding round led by the Schwarz Group.
- Funding target
- Up to 7 billion Canadian dollars
- Company valuation
- About 35.7 billion Canadian dollars
- Lead investor
- Schwarz Group
- Other named investors
- Canadian government and Nvidia
- Cloud platform
- STACKIT
- Research and development site
- Heidelberg
2 sources
What people are saying
It is a signal to talent that Cohere wants to compete at the highest level on the world stage and that our ambitions are extremely high.
Digital sovereignty is about strategic freedom of choice, interoperability and keeping the keys to your own data in your own hands.
A global AI champion will emerge.