MONTRÉAL — Prime Minister Mark Carney announced in Montréal on Oct. 29 that Ottawa will invest up to $1.6 billion in Toronto-based AI company Cohere, taking an equity stake, CBC and BNN Bloomberg reported.
The federal money is part of a funding round led by Germany's Schwarz Group, according to CBC.
Carney: Canada won't wait on AI
Carney said Canada won't wait for the future of artificial intelligence to be decided elsewhere by those Canadians don't know or trust, CBC reported. He made the announcement as he welcomed European Union leaders to Montréal for a summit aimed at forging closer ties.
CBC also reported that Cohere will invest at least $1.7 billion in new computing infrastructure in Canada by 2030. Cohere CEO Aidan Gomez called the government's investment "a huge honour."
The prime minister's public schedule for the day had listed an announcement in Montréal to strengthen Canada's AI digital sovereignty, according to a media advisory from the Prime Minister's Office. Global News also listed the Cohere investment among its top stories that evening.
What the deal involves
The federal commitment is described as "up to" $1.6 billion, so the final amount invested may be lower. Ottawa is taking an equity stake in the company, according to CBC.
CBC also reported context on the wider financing. The round targets about $7 billion and would value Cohere at about $36 billion. Nvidia and Bell Canada are among the investors, the broadcaster said. Cohere said the money will fund model development, products for regulated industries and computing infrastructure.
Schwarz Group, the German retail and technology conglomerate that owns the Lidl and Kaufland chains, is leading the round. CBC reported that it pledged $780 million to lead the round in April, as part of Cohere's merger with the German AI developer Aleph Alpha.
The sovereignty argument
The investment is part of what the government calls its AI digital sovereignty push: the aim is for Canada to have more control over the technology and infrastructure that underpin artificial intelligence, rather than depending on foreign providers.
Cohere is one of the best-known Canadian developers of large language models, the systems behind modern AI chatbots and business tools.
What happens next
The round is still described as a target, and the final size, valuation and each investor's share could change. Details such as the terms of Ottawa's equity stake and the timing of the federal payments have not been spelled out in the reporting reviewed by The Guardia.
The Guardia will update this story as more information is released.
