In what will likely be the biggest European funding round of the year, Aleph Alpha has scooped up roughly half a billion in capital during its Series B, marking a pivotal moment for Europe's presence in the global AI market. Aleph Alpha stands as a leading GPT-3 alternative outside the US.
The round was led by prominent German entities with strong industry connections—Bosch Ventures and Schwartz Group (the parent company of Lidl and Kaufland). It was also backed by notable tech investors, like SAP and HPE. In this episode, get an exclusive inside look at the deal from Claude Ritter, the managing partner of Cavalry Ventures, who was directly involved as an investor.
Even amidst the current AI mania, achieving a billion-dollar funding sum remains rare. Claude delves into what makes Aleph Alpha an enticing buy, such as its unique ability to explain its AI-generated results to users. He explores the individual value each investing partner brings to the table, including why the round was partially funded through grants, as well as where he believes Aleph Alpha can strategically allocate the money. Will $500M suffice to play at a global level? How does Aleph Alpha shape up against Google’s Bard and OpenAI’s ChatGPT? And who should be next entity to to secure half a billion in funding? All these answers and more on the World of Commerce.
Claude Ritter is Managing Partner and Co-Founder of Cavalry Ventures, a venture capital fund based in Berlin. In 2010, Ritter also co-founded Lieferheld/Delivery Hero, which later operated in 40 markets. He served as Chief Product Officer there for four years. Ritter also co-founded Tiger Facility Services in 2014 with 500 cleaners and more than 100 partner companies. He led the business as Chief Executive Officer until it was sold to Helpling.