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Aleph Alpha

Sovereign AI · Germany
Founded 2019 · aleph-alpha.com

Heidelberg-based sovereign-AI lab (Pharia platform); merger with Canadian Cohere announced April 2026: Aleph Alpha shareholders to receive ~10% of combined ~$20B entity.

Aleph Alpha offers EU hosting in Germany, but a US parent or sub-processor leaves material CLOUD Act exposure. It is listed under Sovereign AI.

Assessment notes

Aleph Alpha (Heidelberg, Germany; founded 2019; offices in Berlin, Bayreuth, Munich) was structured as Germany's flagship sovereign AI vendor with anchor investors Schwarz Group, Bosch Ventures, SAP, and the German Federal Ministry for Economic Affairs. On 24 April 2026 Toronto-based Cohere announced a merger that gives Cohere shareholders ~90% of the combined ~US$20B entity, with Aleph Alpha shareholders receiving ~10%; Schwarz Group is committing US$600M to Cohere's Series E to back the sovereign-AI delivery via STACKIT post-close. Pre-merger Aleph Alpha was structurally eu_owned; the announced merger to a Canada-headquartered AI company with heavy US-VC funding shifts the listing to eu_hq_us_funded with material CLOUD Act exposure, pending re-verification after the merger closes. At the 2026-08-26 re-verify the deal had been announced but had not closed: it remains subject to regulatory conditions, the site carries no Cohere branding, and the imprint names Aleph Alpha GmbH (HRB 732804, Amtsgericht Mannheim, managing directors Reto Spörri and Ilhan Scheer) with no Cohere parent or shareholder. No public DPA or sub-processors list found at audit; certifications unconfirmed.

Findings

CLOUD Act
Ownership
Sub-processors
— not disclosed

Verified signals

Jurisdiction
  • EU / adequacy hosting: Yes
  • EU / adequacy operator: Yes
  • No US CLOUD Act exposure: No
Transparency
  • Public DPA: No
  • Sub-processors disclosed: No
  • Open-source clients: No
  • Third-party certification: No
CLOUD Act by deployment

Exposure depends on how you run this product.

Hosted SaaS (default)

Vendor-operated: the sub-processors below apply.

Self-hosted (open-source)

Deploy on your own EU infrastructure and you control hosting and every sub-processor.

Jump to

About Aleph Alpha

Aleph Alpha is a Heidelberg-based German sovereign-AI company founded in 2019 to build "specialised LLMs (SLLMs) for European organisations", large language models that operate inside the customer's security perimeter and meet EU regulatory, defence, and public-sector procurement requirements. Co-founders include Samuel Weinbach (Co-Chief Research Officer); offices in Heidelberg (HQ), Berlin, Bayreuth, and Munich. Anchor investors pre-merger include Schwarz Group (Lidl / Kaufland parent, also the operator of STACKIT sovereign cloud), Bosch Ventures, SAP, and the German Federal Ministry for Economic Affairs (BMWi), making Aleph Alpha until April 2026 the most-anchored German-sovereign-AI cap table.

The strategic landscape changed on 24 April 2026, when Toronto-based Cohere announced a merger with Aleph Alpha to form a transatlantic sovereign-AI group valued at approximately US$20B. The deal terms reported by Handelsblatt: Cohere shareholders receive ~90% of the combined entity, Aleph Alpha shareholders ~10% (Cohere's US$7B pre-deal valuation vs Aleph Alpha's US$3B book value); Schwarz Group commits US$600M to Cohere's Series E, the largest single cheque in Cohere's history, to backstop the sovereign-AI offering that will be delivered via STACKIT. The combined company will target regulated sectors (public sector, finance, defence, energy, manufacturing, telecommunications, healthcare) with Aleph Alpha's German anchor relationships intact through STACKIT delivery. The merger is subject to regulatory approval and had still not closed at the 2026-08-26 re-verify: the imprint names Aleph Alpha GmbH (Speyerer Straße 14, Heidelberg; HRB 732804, Amtsgericht Mannheim; managing directors Reto Spörri and Ilhan Scheer) with no Cohere parent or shareholder, and the site carries no Cohere branding.

For the directory's strict-ownership stance the implication is significant: pre-merger Aleph Alpha was eu_owned (German LLC with German + EU anchor investors); on close the entity becomes a subsidiary of Cohere, a Canadian-headquartered AI company with heavy US-VC funding history (Salesforce Ventures, NVIDIA, etc.), and Aleph Alpha shareholders will hold only ~10% of the combined group. The listing is therefore moved to eu_hq_us_funded with material CLOUD Act exposure pending the transaction close. The on-premise Pharia platform that runs inside the customer firewall continues to eliminate CLOUD Act exposure for self-hosting buyers regardless of the parent-entity change, and Schwarz Group's STACKIT partnership ensures continued sovereign-EU-cloud delivery for the on-premise-adjacent hybrid use case. Best fit: regulated DACH buyers, defence and public-sector procurement, and any organisation that wants to deploy LLM inference behind the customer firewall on sovereign infrastructure, but procurement-grade buyers signing multi-year commitments should monitor the merger close before committing to long-term contracts.

Sub-processor map · not disclosed

Vendor does not publish a sub-processors list. Schrems II compliance and CLOUD Act exposure cannot be independently verified without it.

Frameworks & certifications · none listed

We checked the vendor's website and standard certification body registries. No active certifications found at the time of last audit (2026-08-26).

Capability matrix

Table 1Capabilities of Aleph Alpha

Self-hostable Yes
API access Yes
Chat assistant Yes
Open-weight models Yes
Fine-tuning Yes
Function calling Yes
RAG Yes

Integration & access

REST API Yes
SSO (SAML / OIDC) Yes

Compliance & governance

Audit log Yes
Self-host / on-prem option Yes

Pricing & tiers

Custom pricing

Contact vendor for tier or volume pricing.

View pricing page

Public documents

Vendor does not publish a public DPA. Without a publicly accessible Data Processing Addendum, small EU customers cannot self-serve the processor agreement. This is recorded as no public DPA (see How we assess).
Vendor does not publish a sub-processors list. Schrems II compliance and CLOUD Act exposure cannot be independently verified without it.
  • Data Processing Addendum (DPA)
    — missing
    missing
  • Sub-processors list
    — missing
    missing

Alternatives in this category

  • EU-Hosted
    Public DPA: No Sub-processors: No Open source: Yes
  • Germany · €7.49/mo
    EU-Hosted
    Public DPA: Not assessed Sub-processors: No Open source: No
  • Spain · €12/mo
    EU-Hosted
    Public DPA: No Sub-processors: No Open source: Yes