Enlarge image
Lidl CEO Gerd Chrzanowski joins SAP and Bosch in the AI start-up Aleph Alpha – ahead of Intel and Nvidia
Photo: Marijan Murat / picture alliance / dpa
The Schwarz Group joins Aleph Alpha. According to information from manager magazin, the parent company of Lidl and Kaufland is taking a stake in the hyped provider of artificial intelligence from Heidelberg. Lidl CEO Gerd Chrzanowski (52) thus outperforms the US tech giants Intel and Nvidia, which had already issued corresponding declarations of intent a few months ago.
Just a few weeks ago, Europe's largest retail group founded a digital unit with around 7500,<> employees. In addition to the online business, "Schwarz Digits" bundles the group's cloud and cybersecurity offering, with which CEO Chrzanowski wants to build a European alternative to the dominant American tech companies such as Amazon.
Conversion of the retail discounter into a conglomerate
At the same time, Chrzanowski is driving forward the transformation of the low-cost provider into a conglomerate. The new unit forms the fifth division alongside the well-known retail companies Lidl and Kaufland, the recycling subsidiary Prezero and the food manufacturer Schwarz Produktion. In addition, the company from Neckarsulm in Baden-Württemberg can afford its own fleet of container ships, among other things.
Now another field of activity is to be added that has the potential to change the economic world. The group, which most recently had an annual turnover of 154 billion euros, certainly has the necessary cash for this. At the center of interest is Aleph Alpha, a start-up founded in 2019 that is considered the German answer to Microsoft's ChatGPT.
Largest shareholder with 10 percent of Aleph Alpha
According to investor circles, intensive negotiations took place in Frankfurt until Sunday evening. In the course of a financing round of 100 million euros, the Schwarz Group acquires more than 10 percent of Aleph Alpha, making it the largest shareholder in the future. In addition, the Group is providing around 300 million euros for the start-up's research and development work together with the Schwarz Foundation. In total, the financing package is expected to be in the region of 500 million euros.
Other underwriters in the financing round include SAP and Bosch. Originally, instead of Schwarz, the US chip manufacturers Intel and Nvidia, which had already made corresponding declarations of intent weeks ago, were to get on board. However, the Schwarz Group's offer was more convincing, especially since the agreement also provides for direct cooperation between the two companies.
German investor alliance comes in ahead of Intel and Nvidia
The fact that a German investor alliance is now intervening is also thanks to the commitment of Chancellor Olaf Scholz and Economics Minister Robert Habeck. "This is a transaction that has never been seen before in the field of artificial intelligence," says one of the investors involved, describing the deal as a "courageous and important prime example of industrial policy". Existing investors 468 Capital are also said to have participated in the financing round.
Aleph Alpha CEO Jonas Andrulis, a former Apple manager, had already proclaimed at the beginning of the year that his team was now playing on an equal footing with the American tech giants with the KIT language model Luminous – and was the only provider in Europe to do so. The hype around the start-up is correspondingly high. Successes in the race for the technology of the future are also considered decisive for Germany as a business location.
This is also close to the heart of Lidl owner Dieter Schwarz (84). The entrepreneur and patron is preparing to donate the "Innovation Park Artificial Intelligence" (Ipai) to his hometown of Heilbronn, the largest AI center in Europe. Construction on the 23-hectare site is scheduled to begin next year, with the first buildings scheduled for completion in 2026.
The aim is to create a space for the training of specialists, through research, to the development, application and marketing of ethically responsible AI. Among the companies that have already agreed to cooperate is Aleph Alpha. Just a few days ago, IPAI Aleph Alpha Research GmbH was founded specifically for this purpose.
Not the Schwarz Group's first AI deal
The direct stake in Aleph Alpha is not the Schwarz Group's first AI deal. Until a few months ago, the group held a 20 percent stake in the Berlin-based start-up G2K. In the meantime, however, the discounter has cashed in and exited in the course of the takeover of G2K by the US software group ServiceNow.
According to insiders, ServiceNow is said to have paid a "high three-digit million amount" to outbid Microsoft and Google, which had also been rumored to be interested. The acquisition was hailed by the German Startup Association as the "largest AI deal in Germany". Now there is a deal in new dimensions – and one that is designed for the long term.