Berlin/Heidelberg (dpa) - The German AI start-up Aleph Alpha has received a financial injection of more than half a billion US dollars (486 million euros). The financing round is led by venture capitalist Innovation Park Artificial Intelligence (IPAI), the Bosch Group and the retail and IT group Schwarz Group (Lidl, Kaufland). Aleph Alpha made the announcement on Monday at the Baden-Württemberg state representation in Berlin. Europe's largest software group SAP and the investors Christ&Company and BurdaPrincipal Investments (BPI) are also on board for the second financing round.

Aleph Alpha develops large language models with artificial intelligence (AI) functions, similar to the Californian start-up OpenAI with ChatGPT. However, the Heidelberg-based company specializes in use cases for public administration and industry.

With the fresh money from investors, Aleph Alpha should be able to compete with OpenAI as well as large corporations such as Microsoft and Google. A significant proportion of the investment will be provided in the form of a capital commitment from IPAI, a project of the Dieter Schwarz Foundation, which aims to establish Europe's largest research center for artificial intelligence in Heilbronn.

Aleph Alpha is regarded as a German flagship start-up. On Monday, Economics Minister Robert Habeck (Greens) spoke of an "incredible success story". Founded in 2019, the company achieved a milestone last spring on the road to correct, explainable and trustworthy artificial intelligence. An extension of the in-house language model Luminous is able to understand relationships in information and factual correctness on the basis of verified facts. Luminous forms the technical backbone of the city of Heidelberg's citizen information system Lumi, for example.

Do not overdo AI regulation

"With this latest investment, we will further expand our capabilities and enable our partners to be at the forefront of this technological development," said Jonas Andrulis, CEO and founder of Aleph Alpha. In order to support customers, his company will continuously expand its offering. In sensitive areas of responsibility and in strategic environments where sovereignty plays a central role, Aleph Alpha "will continue to be the best option", Andrulis said. The company founder appealed to politicians not to overdo the upcoming regulation of AI. "We also need a few more field players, not just referees."

Minister Habeck also warned against reducing the discussion about AI to the topic of safety. At the British AI summit in Bletchley Park, for example, there was too little discussion of the possibilities for his taste. Europe must now "really step on the gas" in order not to be left behind internationally. "Wherever we are strong, 'AI made in Europe' can also become strong," said Habeck. Germany has its own expertise in sectors such as mechanical engineering, robotics and telecommunications. There is also sufficient data and expertise available in these areas.

State Minister Florian Stegmann (Greens), Head of the State Chancellery in Stuttgart, pointed out that an AI ecosystem had developed in Baden-Württemberg. The "Cyber Valley" in the state has developed into the European magnet for machine learning. "We have cutting-edge research, we have hubs, we have technology centers, we have the Innovation Park Artifical Intelligence (IPAI) in Heilbronn, which also plays a very important role today, and we have a very active start-up scene: and Aleph Alpha has also emerged from this."