Germany's Deutsche Bank joins AI start-up as investor and partner

Germany's Deutsche Bank is joining Aleph Alpha, the country's largest start-up in the field of artificial intelligence (AI), "as a strategic investor and partner," the start-up confirmed on Wednesday.

The bank is to take over shares from two early investors, 468 Capital and Lakestar, Aleph Alpha told Germany's Manager Magazin and Handelsblatt newspapers. The size of Deutsche Bank's stake was not disclosed, but according to information from Handelsblatt, it is just under 2% of the Aleph Alpha's total shares.

"Deutsche Bank is the perfect partner for our AI innovation strategy in one of our most important industries," Aleph Alpha's founder and chief executive Jonas Andrulis said.

He said company perspectives in the shareholder group give the AI start-up insights into the requirements and opportunities arising from the transformation of the knowledge sector.

Aleph Alpha develops AI systems to automate processes in companies and public authorities.

The start-up received a financial injection of more than half a billion dollars a year ago. After this major financing round, there were repeated doubts as to whether it could compete with large US corporations such as Google and Microsoft.

However, the current deal is reportedly valued at a similar level to that of one year ago.

Other investors are also acquiring shares in Aleph Alpha, including existing shareholders such as the venture capital firm Earlybird, which now holds almost 16% of the start-up's shares.