Cohere, the Canadian-based enterprise AI unicorn, proclaimed on Friday its plans to merge with the Germany-based enterprise AI firm Aleph Alpha.

The agreement, which has not yet been finalized, is expected to value the newly created entity at $20 billion, according to the FT. Schwarz Group, a key investor in Aleph Alpha, will also contribute $600 million to Cohere’s Series E funding round, which is anticipated to conclude later this year, CNBC reported.

A select number of Silicon Valley entities continue to lead the AI commercial sector, which is experiencing a wave of consolidation.

A press announcement regarding the Cohere-Aleph Alpha merger stated that one of the objectives is to provide businesses and governments with an alternative to these major tech entities, offering enhanced independence and control over their data. It also aims to merge the talent pools from Canada and Germany to establish a “transatlantic AI powerhouse.”