Additively manufactured metallic materials exhibit excellent mechanical strength. However, they often fail prematurely owing to external defects (pores and unmelted particles) that act as sites for crack initiation. Cracks then propagate through grain boundaries and/or cellular boundaries that contain continuous brittle second phases. In this work, the premature failure mechanisms in selective laser melted (SLM) materials were studied. A submicron structure was introduced in a SLM Ag–Cu–Ge alloy that showed semicoherent precipitates distributed in a discontinuous but periodic fashion along the cellular boundaries. This structure led to a remarkable strength of 410 ± 3 MPa with 16 ± 0.5% uniform elongation, well surpassing the strength-ductility combination of their cast and annealed counterparts. The hierarchical SLM microstructure with a periodic arrangement of precipitates and a high density of internal defects led to a high strain hardening rate and strong strengthening, as evidenced by the fact that the precipitates were twinned and encircled by a high density of internal defects, such as dislocations, stacking faults and twins. However, the samples fractured before necking owing to the crack acceleration along the external defects. This work provides an approach for additively manufacturing materials with an ultrahigh strength combined with a high ductility provided that premature failure is alleviated.