Ottawa is making a major investment in Canadian artificial intelligence, with plans to take an ownership stake in Toronto-founded AI company Cohere.
Prime Minister Mark Carney announced on October 29 that Ottawa will invest up to $1.6 billion in Cohere, alongside private investors including NVIDIA, Bell and Schwarz Group.
Unlike a grant, the funding will be an equity investment, meaning the federal government will acquire a stake in the company and potentially benefit financially from its growth.
What Will Cohere Do With the Investment?
Per the news release, the funding is intended to help Cohere expand its AI technology, computing infrastructure and Canadian workforce.
Under the agreement, the company has committed to:
- Creating at least 1,000 high-paying technical jobs in Canada by 2030.
- Investing at least $1.7 billion in additional computing infrastructure in Canada by 2030.
- Maintaining its Canadian headquarters and incorporation.
- Expanding research partnerships and creating opportunities for students and recent graduates.
- Continuing its work with the Canadian AI Safety Institute.
The federal investment will be provided in stages, with regular reporting to track whether Cohere meets its job creation and investment commitments.
Why Is Canada Investing in Cohere?
Founded in Toronto, Cohere develops AI systems for businesses and governments, with an emphasis on protecting sensitive information and allowing organizations greater control over their data.
The government wants to expand Canada’s ability to develop and operate advanced AI technology domestically rather than relying entirely on foreign providers.
“It is not enough for great companies to start in Canada. We want them to grow here, build here, and create good jobs here,” said Evan Solomon, Minister of Artificial Intelligence and Digital Innovation.
Cohere CEO and co-founder Aidan Gomez said the investment would help the company attract talent, develop more advanced AI systems and expand internationally.
The announcement follows Cohere’s recent merger with German AI company Aleph Alpha.