Business · Companies · 1 day ago
Canada to invest up to $1.6B in AI company Cohere
Prime Minister Mark Carney announced that Canada will invest up to $1.6 billion in Cohere on Thursday in Montreal.
Cohere is a Toronto-based artificial intelligence company, and the government will take an ownership stake as part of a larger funding round.
The deal is intended to build Canada's own AI capacity rather than leave the technology's future to other countries.
Cohere has agreed to keep its headquarters and incorporation in Canada, create at least 1,000 new technical jobs and invest at least $1.7 billion in Canadian computing infrastructure by 2030.
The investment will be paid in stages, with regular reports on the company's commitments.
The funding round, led by Germany's Schwarz Group and including investors such as Nvidia and Bell, aims to raise $7 billion and would value Cohere at about $36 billion.
AI Minister Evan Solomon also said a planned $500-million Canadian Tech Growth Fund may take ownership stakes in other small and medium-sized companies.
Canada will invest up to $1.6 billion in Toronto-based AI company Cohere, Prime Minister Mark Carney announced in Montreal.
The investment is an equity stake and will be made in stages, with regular reporting by Cohere.
Cohere has committed to invest at least $1.7 billion in Canadian computing infrastructure by 2030 and create at least 1,000 new high-paying Canadian technical jobs.
The government says Cohere will maintain its Canadian headquarters and incorporation.
AI Minister Evan Solomon said a forthcoming $500-million Canadian Tech Growth Fund will also be able to take equity stakes in companies.
- Who
- The federal government and Toronto-based AI company Cohere.
- What
- Canada will invest up to $1.6 billion in Cohere as part of a larger funding round.
- When
- Announced Thursday, October 29, 2026.
- Where
- Montreal, Canada; Cohere is based in Toronto.
- Why
- The government says the investment will strengthen Canada’s AI capacity and sovereignty.
This story does not have two clearly opposing sides.
The government announced up to $240 million for Cohere to boost its computing capacity.
Ottawa signed an agreement with Cohere to identify areas where AI could improve public service operations.
Cohere announced it would merge with Germany’s Aleph Alpha and said the company would be anchored in Germany and Canada.
Mark Carney announced Canada’s investment in Cohere in Montreal.
Cohere is to invest at least $1.7 billion in computing infrastructure in Canada.
- Investment
- Up to $1.6 billion
- Company
- Cohere, Toronto-based AI developer
- Funding round target
- $7 billion
- Cohere infrastructure commitment
- At least $1.7 billion in Canada by 2030
- Job commitment
- At least 1,000 new high-paying Canadian technical jobs
- Canadian Tech Growth Fund
- $500 million
7 sources
Ottawa investing up to $1.6B in Canadian AI company Cohere
Cohere deal won’t be last time feds take stake in Canadian tech companies, AI minister says
Carney frames C$1.6B AI investment as national security imperative
Ottawa to invest up to $1.6B in Canadian AI firm Cohere
Ottawa to invest up to $1.6-billion in Cohere as AI firm’s valuation soars to $35.7-billion
Canada to invest up to $1.6B in Toronto-based AI company Cohere
What people are saying
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. We’re building it right here in the right way.
We believe Canadians have made a good, valuable investment in an important company that gives us a seat at the table to control and build this technology.
a huge honour.