Canada to invest up to $1.6 billion in AI firm Cohere

The Canadian federal government has announced a planned equity investment of up to $1.6 billion in Toronto-based artificial intelligence company Cohere. Announced by Prime Minister Mark Carney in Montreal, the investment will be made in stages alongside private investors including Nvidia, Bell, and Germany’s Schwarz Group.

The initiative aims to bolster sovereign AI capabilities, allowing Canadian businesses and governments greater control over data and reducing reliance on foreign technology. As part of the agreement, Cohere has committed to maintaining its Canadian headquarters and incorporation, creating at least 1,000 high-paying technical jobs by 2030, and investing at least $1.7 billion in additional domestic computing infrastructure.

AI and digital innovation minister Evan Solomon indicated that this deal is part of a broader strategy to support domestic tech. A forthcoming $500-million Canadian Tech Growth Fund is also expected to provide flexible growth capital and may include future equity positions in small and medium-sized companies to encourage capital growth.