Ontario Construction News staff writer
Canada will invest up to $240 million in Toronto-based AI platform Cohere, the first funding initiative under the newly launched Canadian Sovereign AI Compute Strategy, a $2-billion national plan aimed at enhancing Canada’s AI capabilities and securing its competitive edge in the rapidly evolving AI sector.
Funding will enable Cohere to attract private sector funding to build a state-of-the-art, multi-billion-dollar AI data centre in Canada. Set to begin operations in 2025, the facility will provide crucial domestic computing power for Cohere and other Canadian AI companies, ensuring they have the infrastructure needed to develop next-generation AI solutions.
Deputy Prime Minister and finance minister Chrystia Freeland highlighted the significance of the investment in maintaining Canada’s AI leadership.
“We are delivering on our commitment to secure Canada’s AI advantage with monumental investments in Canadian AI leaders and Canadian AI compute,” Freeland said at the announcement last week. “Our $240-million investment in Cohere is crowding in a multi-billion-dollar private investment to build compute capacity, which will create good Canadian jobs paying higher wages.”
Canada’s AI sector has seen significant growth in recent years, through private sector investment and strong research output. The Canadian Sovereign AI Compute Strategy, launched Dec. 5, aims to accelerate this momentum by providing targeted support to Canadian AI companies and researchers. It includes up to $700 million to help AI firms leverage private investment in new or expanded data centres, as well as other funding to ensure affordable domestic compute power for innovators across the country.
“Artificial intelligence is revolutionizing the world, and Canada is at the forefront with one of the most advanced ecosystems globally,” said Minister of Innovation, Science and Industry François-Philippe Champagne. “Canadian champions drawing in billions of dollars in investment to build infrastructure is a homerun when it comes to putting policy into action.
“Today’s announcement with Cohere shows that our AI Compute Strategy is already driving innovation and mobilizing the private sector.”
Founded in 2019, Cohere offers solutions that help companies improve productivity and drive efficiency across various sectors.
“The government’s investment in AI innovation is helping companies use this emerging technology to drive productivity,” said Aidan Gomez, founder and CEO of Cohere. “Cohere will use this support to continue building cutting-edge AI solutions that deliver significant efficiency gains for customers. We are proud of our Canadian heritage and look forward to growing our workforce in the country, while further building our global business.”
