November 20, 2023

European OpenAI Competitor Aleph Alpha Raises $500M

Aleph Alpha

Investment raised

500M USD

Valuation

Stage

Region

🏆 Deal of the Month · November 2023

Aleph Alpha raised 500 million USD in a Series B round in November 2023; the company's valuation was not disclosed. The round drew capital from a consortium of seven strategic and institutional investors spanning enterprise technology, media, and industrial sectors. This deal was recognised as Venionaire DealMatrix Deal of the Month for November 2023.

Aleph Alpha — key deal facts

Company Aleph Alpha
Founded 2019
Headquarters Heidelberg, Germany
Amount raised 500M USD
Valuation Valuation Remains Undisclosed
Round Series B
Investors Bosch Ventures Burda Principal Investments Christ & Company Hewlett Packard Enterprise Innovation Park Artificial Intelligence SAP Schwarz Group
Sectors Artificial Intelligence (AI)

Who invested in Aleph Alpha?

The round was backed by Bosch Ventures, Burda Principal Investments, Christ & Company, Hewlett Packard Enterprise, Innovation Park Artificial Intelligence, SAP, and Schwarz Group. The investor composition is notable for its concentration of German and European industrial and technology incumbents, signalling a deliberate alignment with the sovereign AI thesis Aleph Alpha pursues. The presence of SAP and Schwarz Group alongside HPE underscores the company's positioning as an enterprise and government-grade AI provider.

What does Aleph Alpha do?

Aleph Alpha is a German artificial intelligence company founded in 2019 by Jonas Andrulis, who serves as CEO. Headquartered in Heidelberg, Germany, the company develops sovereign, human-centric generative AI as a European alternative to US-based large language model providers. Its flagship product, PhariaAI, is a full-stack generative AI suite comprising PhariaAssistant, PhariaStudio, PhariaOS, and PhariaCatch, designed to deliver customisable, explainable, and secure AI solutions for enterprises and governments operating in mission-critical environments.

Aleph Alpha valuation & multiples

No existing multiples analysis was provided for this deal. Because Aleph Alpha's valuation was not disclosed at the time of the Series B closing, EV/Sales and EV/EBITDA benchmarking cannot be applied to this transaction directly. Investors seeking relevant valuation context for AI software peers can explore sector-specific multiples on the Venionaire DealMatrix Artificial Intelligence sector multiples pages.

Explore the benchmarks: Series B.

Frequently asked questions

How much did Aleph Alpha raise in its Series B?

Aleph Alpha raised 500 million USD in its Series B round, closed in November 2023.

What is Aleph Alpha's valuation?

Aleph Alpha's valuation was not disclosed in connection with its Series B round.

Who invested in Aleph Alpha?

The Series B investors were Bosch Ventures, Burda Principal Investments, Christ & Company, Hewlett Packard Enterprise, Innovation Park Artificial Intelligence, SAP, and Schwarz Group.

When was Aleph Alpha founded and where is it based?

Aleph Alpha was founded in 2019 and is headquartered in Heidelberg, Germany.

Source: original announcement — read the full report.

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