By Sumayya
OTTAWA — Prime Minister Mark Carney stated on Thursday that his government will give up to $1.6 billion to the Canadian AI company Cohere.
He shared this news in Montreal while welcoming leaders from the European Union to a meeting meant to create closer connections.
“We are not waiting for the future of AI to be decided in another place by people we do not know or whom we do not trust. We are building it right here in the correct way,” Carney said.
In April, Cohere announced that it would combine with Germany’s company Aleph Alpha and said the business would be based in Germany and Canada.
On Thursday, Carney called the partnership a real example of what Canada and Europe can build together.
He also stated that, under the deal, Cohere will remain a Canadian company.
Carney said the government is sharing this news on a business basis, together with private investors including Nvidia, Bell, and Germany’s Schwarz Group.
The leader of Cohere, Aidan Gomez, said during the announcement that the company, which started seven years ago, is now “one of the very few companies in the world building top-level AI technology on a global scale.”
He added that it is the biggest AI business outside of the United States and China.
In a news statement given on Thursday, the government said the money would be given in steps, with regular reports on the promises made by the company.
Those promises include creating at least 1,000 “new high-paying Canadian technical jobs” and spending at least $1.7 billion to build more computer infrastructure by the year 2030.
The government says Cohere will also keep its Canadian main office and business registration, spend money on research partnerships, create chances for students and graduates, and keep working with the Canadian AI Safety Institute.
“Cohere will now be able to create much more advanced models and products, grow its computer infrastructure, and increase its Canadian workforce to help more businesses and governments in Canada and around the world,” the news statement said.
“Building this ability at home ultimately means that Canadian businesses and governments will have more choices in how they use AI and better control over their private information.”
In the year 2024, the government announced it would give up to $240 million to Cohere to increase its computer power. In the year 2025, Ottawa signed a deal with the company to find areas where AI can improve government services.
Artificial Intelligence Minister Evan Solomon has often pointed to Cohere as a sign of Canada’s strength in AI, saying Canada is one of only a few countries in the world with a large language model.
