Why we invested: Aleph Alpha

Post on 06 November 2023 by Christian Teichmann, Friedrich von Wulffen

BPI Invests in the Next Generation of AI for Enterprises

At Burda Principal Investments (BPI), we are convinced that Artificial Intelligence (AI) has unleashed the third wave of digital innovation, following the internet and cloud computing. In the specific realm of Generative AI, we recognize a strong demand for differentiation and defensibility. This often involves leveraging domain-specific, unique, and proprietary data to build enduring products and, consequently, a sustainable competitive edge around businesses. (Explore some of our perspectives on the Generative AI value chain here.)

Aleph Alpha Secures Substantial Funding

We are excited to announce that we have recently participated in the Series B funding round of Aleph Alpha, Germany’s premier developer of Generative AI. Aleph Alpha secured an investment exceeding half a billion US dollars from a consortium of industry leaders and new investors. Leading the investment is the Innovation Park Artificial Intelligence (Ipai), alongside Bosch Ventures and the Schwarz Group companies. Besides BPI, other new investors SAP, Hewlett Packard Enterprise, and Christ & Company Consulting, have joined the ranks. Existing institutional backers, such as 468 Capital, LEA Partners, Earlybird, UVC, and Cavalry, also contributed to the oversubscribed round. This round, endorsed by some of Germany’s most prominent enterprises, includes a significant commitment to applied research with Ipai and pledges for shared business development and co-innovation with leading companies in vital international industries.

Aleph Alpha plans to further expand its B2B and B2G offerings, focusing on explainable and trustworthy AI in fully sovereign applications. The investment will fuel category-defining research on foundational models and the enhancement of product capabilities, especially for business-critical environments, as well as the commercialization with selected strategic partners.


BPI and Artificial Intelligence

Our journey into AI and Machine Learning at BPI began with an extensive exploration in 2018. That led us to meet Jonas shortly after Aleph Alpha completed their Seed funding round. Our continuous engagement has included numerous panel discussions on the topic of Generative AI at DLD over the years, featuring our CEO Christian and Jonas (watch some of these discussions here and here). We have had the privilege of observing the company’s developmental journey towards the growth stage and are now excited to solidify our partnership with Aleph Alpha for the long term.

Jonas Andrulis, CEO of Aleph Alpha, shares our enthusiasm: “We are astounded by the technology’s incredible potential and the opportunities it heralds for a new era of human-machine collaboration. The commercial traction we’re experiencing is a powerful motivator for growth to satisfy our clients’ needs and to maintain our status as one of the leading teams in Generative AI. Our partners are industry pioneers with enormous potential for innovation and expansion. We are dedicated to fostering these partnerships to secure a leading position in their respective industries. Our distinctive explainability and trust technology play a pivotal role in this pursuit.”

“As an international growth capital provider, we follow the global development of AI, and we are convinced that Europe must become stronger. Aleph Alpha has developed one of the few LLMs in Europe that can compete with US models, that has reached a relevant scale and that is based on European values: Especially in terms of privacy and transparency. We are very excited to partner with Aleph Alpha and drive the business forward together with Jonas Andrulis and his team,” says Christian Teichmann, CEO at BPI.