Canada is taking an equity stake of up to C$1.6 billion in Toronto-based artificial intelligence company Cohere, Prime Minister Mark Carney announced on 29 October in Montréal, in a landmark move to keep advanced AI development under Canadian ownership.
The government described the investment as a commercial one, made alongside private investors including NVIDIA, Bell and Germany’s Schwarz Group, as part of a funding round targeting up to C$7 billion that would value Cohere at about C$35.7 billion.
FAKTA
- Investment: Up to C$1.6 billion in equity, announced 29 October 2026 by Prime Minister Mark Carney.
- Channel: Through the federal Crown corporation CDEV, paid in stages with regular progress reporting.
- Company: Cohere, founded in Toronto in 2019, builds secure AI systems for businesses and governments; CEO Aidan Gomez.
- Conditions by 2030: At least 1,000 new high-paying Canadian technical jobs; at least C$1.7 billion in new Canadian computing infrastructure; Canadian incorporation and headquarters retained.
- Funding round: Series E targeting up to C$7 billion at a C$35.7 billion valuation, led by Schwarz Group; only an initial close completed so far.
Why Canada is buying in
Carney framed the move as a matter of sovereignty rather than venture capital. Cohere is presented as a Canadian success story projected to be a leader in sovereign AI, and by taking an equity stake, Canada will share in the company’s success while keeping its headquarters, incorporation and growth in the country.
The investment was announced at the opening of the Canada-European Union Summit in Montréal. Cohere, led by chief executive Aidan Gomez, focuses on models built for businesses and governments rather than consumer applications, distinguishing it from larger rivals such as OpenAI and Anthropic.
Jobs, compute and conditions
As conditions of receiving the staged capital, Cohere must create at least 1,000 new high-paying Canadian technical jobs by 2030, commit at least C$1.7 billion to new computing infrastructure in Canada by 2030, maintain its Canadian incorporation and headquarters, invest in research partnerships with Canadian institutions and continue working with the Canadian AI Safety Institute on safety standards.
On 30 October, Cohere said its multi-year Canada investment effort, begun in 2024, is now expected to create more than 1,500 Canada-based jobs and deliver more than C$4 billion in research and development and AI infrastructure investment through 2031. Ottawa had previously committed C$240 million to Cohere under its 2024 Sovereign AI Compute Strategy.
Conclusion
The Cohere stake is the capstone of Canada’s push to build a domestic AI champion: public money, staged against measurable commitments, designed to keep a leading AI company Canadian as the global race for AI capability intensifies.
