In a second round of financing, the start-up Aleph Alpha received a further $500 million. The young company from Heidelberg is working on language models for industry and administration.
The Heidelberg start-up Aleph Alpha has gained further well-known investors. In a second round of financing, the AI developer receives $500 million. The financing round is led by the venture capitalist Innovation Park Artificial Intelligence (IPAI), the Bosch Group and the trading and IT group Schwarz Group (Lidl, Kaufland). The Walldorf-based software group SAP, which already has a stake in Aleph Alpha, is also providing additional money.
Competition with OpenAI
Aleph Alpha is working on language models with so-called generative artificial intelligence (AI), which, like ChatGPT, can create content based on just a few keywords. The start-up specializes in programs for public administration and industry. The in-house language model Luminous, for example, forms the technical backbone of the city of Heidelberg’s citizen information system Lumi.
The new money will enable the company to assert itself in competition with OpenAI, but also large corporations such as Microsoft and Google. “We have high hopes for the further developments of Aleph Alpha with a focus on trustworthy AI solutions,” said Ingo Ramesohl, Managing Director of Bosch Ventures.
“Insane success story”
The company, founded in 2019, is considered a model German start-up. Last spring, the young company managed to reach a milestone on the path to content-correct, explainable and trustworthy artificial intelligence. An extension of Luminous should be able to understand related information and factual correctness based on proven facts.
Economics Minister Robert Habeck (Greens) spoke today of an “insane success story”. However, Europe needs to “really give it its all” when it comes to AI in order not to be left behind internationally. “Wherever we are strong, AI made in Europe can also become strong,” said Habeck, citing the mechanical engineering, robotics and telecommunications sectors in Germany as examples.
“With this latest investment, we will continue to expand our capabilities and enable our partners to be at the forefront of this technological development,” said company founder Jonas Andrulis. At the same time, the Aleph Alpha boss appealed to politicians not to overdo the upcoming regulation of AI. “We also need a few field players, not just referees.”