Prime Minister Mark Carney speaks at Parliament Hill in Ottawa, Ontario, Canada, on October 18, 2026. (Photo by Dave Chan / AFP via Getty Images)
Prime Minister Mark Carney says the federal government will invest up to $1.6 billion in Toronto-based artificial intelligence company Cohere, saying the company’s work towards “sovereign AI” will help strengthen Canada’s economy and national security.
Carney announced the planned equity investment on Oct. 29 in Montreal, saying that developing Canadian AI systems could give businesses and governments more control over their data and reduce reliance on foreign technology providers.
“We are not waiting for the future of AI to be decided somewhere else by those we don’t know, or by whom we don’t trust,” Carney said. “We’re building it right here in the right way.”
Ottawa’s equity stake of up to $1.6 billion in Cohere will be made in stages, alongside private investors, including Bell, Nvidia, and Germany’s Schwarz Group.
“Because of the scale and strategic importance of our commitment, we’ve secured strong terms for Canadians who will own that stake in Cohere and share in its growth,” Carney said.
Cohere CEO Aidan Gomez said at the announcement that the company, which was founded in 2019, is now “one of the very few companies in the world building frontier AI technology at a global scale.”
He said the funding would help the company expand its research, computing infrastructure, and workforce.
“This funding will help us to continue to build in Canada,” Gomez said. “It will help us invest in the infrastructure, the research, and the talent needed to compete globally.”
Under the agreement, Cohere has committed to maintaining its Canadian incorporation and headquarters, creating at least 1,000 new “high-paying technical jobs” by 2030, and investing at least $1.7 billion in additional computing infrastructure in Canada by that year.
The government said its investment would be made in stages, with regular reporting on progress toward the company’s commitments.
Carney said developing and operating Canadian-origin AI technology is increasingly important to the country’s economic security and national sovereignty. He argued that advanced AI capabilities are concentrated among a relatively small number of companies and countries, creating potential risks for access, resilience and technological independence.
The prime minister also linked the investment to the federal government’s new national security strategy, released on Oct. 29. The strategy identifies economic security, strategic industries, technology ,and resilient supply chains as elements of Canada’s broader national security priorities.
“Sovereignty now requires secure access to semiconductors, critical minerals, payment systems, clean energy technologies, vaccines, space-based communications, and artificial intelligence,” he said.
Artificial Intelligence Minister Evan Solomon also emphasized the government’s goal of expanding Canadian control over AI development and deployment. The federal government’s AI for All strategy was announced on June 4.
Canada-EU Alliance
Carney’s announcement took place in Montreal ahead of the Canada-EU summit Oct. 29-30, where leaders are discussing closer cooperation in areas including trade, energy, defence, technology, and critical minerals, according to the Prime Minister’s Office.
Carney cited Cohere’s cooperation with German firms as an example of how Canada and the EU could mutually benefit from closer ties.
Carney said AI cooperation is one of the areas expected to be discussed as Ottawa and Brussels seek closer formal ties.
Carney also said legislation concerning AI and social media safety would be brought forward in Parliament. The federal government’s June AI strategy already outlined plans for additional legislation and regulatory measures, including steps to address risks associated with AI and online platforms.
During an address to the European Parliament on Sept. 17, Carney said Canada and the EU could pursue closer cooperation on AI safety, computing capacity, and aligned standards as part of a broader partnership.