Global AI, Malaysia Angle / AI news for Malaysia
Cohere and Aleph Alpha sign sovereign AI merger built around Canada and Germany
Two sovereign AI specialists are becoming one company with planned headquarters in Berlin and Toronto. Malaysia wants the same control over compute, data and models, but a national plan is not a supplier.

In brief
- Cohere and Aleph Alpha signed a definitive business combination agreement on 16 September 2026, turning the combination they announced on 24 April into one company operating globally as Cohere.[1][2][3]
- The company plans dual headquarters in Berlin and Toronto, will keep Aleph Alpha's Heidelberg office as a research centre and will pass 1,000 staff, subject to regulatory approvals the companies expect to complete later this year.[1][2]
- Neither announcement names an Asian market, a Malaysian entity or a transaction value, while Malaysia pursues sovereign AI through AI Malaysia Berhad and the National AI Action Plan 2026-2030.[1][2][6][7]
A Canadian and a German AI firm become one sovereign AI vendor
Sovereign AI now has a corporate shape. On 16 September 2026, Cohere of Canada and Aleph Alpha of Germany said they had signed a definitive business combination agreement, converting an alliance announced in April into a single company operating globally under the Cohere name. The transaction remains subject to final regulatory approvals.[1][2]
The pitch is deliberately narrow. Both firms sell to governments and regulated industries that want capable models without handing control of their data, deployment or infrastructure to one foreign vendor. That is close to the case Malaysia makes for Made by Malaysia AI, which is why a deal with no Asian commitment matters here.[1][6]

What the two companies actually signed
Cohere published the news on its blog and issued a joint release under its own name through PR Newswire the same day. Both say the agreement is definitive and follows the planned combination of 24 April 2026, when the companies of Schwarz Group committed 500 million euros in structured financing. Both say it remains subject to final regulatory approvals and is expected to close later this year.[1][2][3]
The structural detail is specific. The company will be dual-headquartered in Berlin and Toronto, keep the Heidelberg office as a research centre and pass 1,000 employees across both continents. Ilhan Scheer, currently Co-CEO of Aleph Alpha, becomes Chief Operating Officer, and Samuel Weinbach, co-founder and Co-Chief Research Officer, becomes Chief Research Officer. Both appointments take effect only on completion. No purchase price appears in either document.[1][2]

Sovereignty is the product, not the slogan
Cohere says the combined company will be the first foundational model developer anchored on both sides of the Atlantic and aligned with the sovereignty requirements of both Canada and Germany. It says the company will work within both legal frameworks, including rules governing sensitive data and technology, and that its structure incorporates safeguards and oversight mechanisms. Neither document publishes the governance instruments, so those safeguards cannot be checked from outside.[1][2]
The delivery layer is named. Cohere says it will advance its partnership with the companies of Schwarz Group to deliver sovereign AI on STACKIT, the Schwarz Digits sovereign cloud. The same day it announced a separate OpenText partnership to run its North platform with Aviator agents on-premises or in private, public or sovereign cloud. In April it cited McKinsey research putting sovereign AI needs near 600 billion US dollars of a projected AI services market above 1 trillion, a vendor citation rather than an audited figure.[1][4][3]

The governments in the picture, and the ones that are not
The joint release carries a photograph whose caption names Evan Solomon, Canada's minister for artificial intelligence, alongside Aidan Gomez, Germany's federal digital minister Karsten Wildberger and Samuel Weinbach. That signals who the intended customer is. Neither release describes either government as a party to the agreement, and neither announces a public contract.[2]
The absences matter as much. No Asian market, Southeast Asian partner, Malaysian entity, Bahasa Melayu commitment or price appears in either document. Aleph Alpha's own blog index, read live on 18 September 2026, carried no post about the agreement, so the corroborating public record remains the joint release under Cohere Inc's name. Read it as a signed agreement awaiting approval, not a merger you can buy from.[1][2][5]
Why Malaysia should care
Malaysia is chasing the same idea through its own institutions. The Ministry of Digital's National AI Action Plan 2026-2030 defines sovereign AI as a nation's capacity to build, train and deploy AI using its own infrastructure, data and workforce. It names AI Malaysia, the National AI Office, as central implementer for Made by Malaysia AI, including large language models and sovereign compute, and proposes a certification framework for compute, data and models plus a compliance roadmap against vendor lock-in. NACSA and MCMC also signed a memorandum of understanding with IBM Malaysia on 9 July 2026 to explore a National Quantum and Artificial Intelligence Centre of Excellence. None of that names a model vendor.
Malaysian public agencies buying AI
A second credible sovereign AI vendor group exists, but it has announced nothing for this region.[1][6]
Practical move: Keep sovereign AI procurement criteria vendor-neutral, as the action plan's classification framework proposes.
What Malaysians can do now
- Treat this as a signed agreement awaiting regulatory approval, not a finished merger.
- When a vendor says sovereign, ask which jurisdiction, which data centre and which law.
- Borrow the action plan's compute, data and model classification language for your own AI procurement.
What we still do not know
The agreement is signed. The price and the map are not.
- The transaction value, which neither document discloses.
- Which regulators must clear the deal, and when it closes.
- Whether the combined company will sell or host anything in Malaysia or Southeast Asia.
- What the governance safeguards contain, since neither document publishes them.
Sources
- 1.Cohere and Aleph Alpha sign agreement to become the first transatlantic sovereign AI solution Cohere, 16 September 2026
- 2.Cohere and Aleph Alpha Sign Agreement to Become the First Transatlantic Sovereign AI Solution Cohere Inc, issued through PR Newswire, 16 September 2026
- 3.Cohere and Aleph Alpha join forces to form global AI powerhouse as nations and enterprises demand control over their technology Cohere, 24 April 2026
- 4.Cohere and OpenText partner to bring trusted agentic AI to governments and regulated industries Cohere, 16 September 2026
- 5.Blog Aleph Alpha
- 6.AI Nation 2030: National AI Action Plan 2026-2030 Ministry of Digital Malaysia and AI Malaysia Berhad (National AI Office), 18 August 2026
- 7.AI Malaysia Berhad (National AI Office) AI Malaysia Berhad
- 8.NACSA, MCMC and IBM forge strategic partnership to advance Malaysia's sovereign AI and quantum future Malaysian Communications and Multimedia Commission, 9 July 2026
- 9.File:Aidan Gomez at "ALL IN" 2025 02.jpg Wikimedia Commons, 28 September 2025
- 10.File:Evan Soloman at "ALL IN" 2025 07.jpg Wikimedia Commons, 28 September 2025
- 11.File:Karsten Wildberger at Republica25 2025-05-27 09.jpg Wikimedia Commons, 31 May 2025
- 12.File:Andrulis DLD.jpg Wikimedia Commons, 27 April 2024


