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Canada Pledges Billions to Propel Homegrown AI, Backing Startups and Data Infrastructure

Ottawa’s revised AI framework places priority on safeguarding personal information alongside fresh infrastructure spending.

Overview

  • The government is shifting from caution to proactive adoption by integrating Canadian-developed AI tools into public services and encouraging private sector uptake.
  • Ottawa has already budgeted $2 billion to expand AI computing capacity and plans further multi-billion-dollar investments in domestic data centres and quantum infrastructure.
  • Cohere secured a $240 million commitment to acquire compute capacity at CoreWeave’s new Canadian data centre in a landmark infrastructure deal.
  • Homegrown AI startups such as Cohere and Ada will receive government contracts to validate their technologies and attract global investment for dual-use applications.
  • A federal Quantum Advisory Council proposal outlines a DARPA-style benchmarking initiative that could award applicants up to US$316 million each by 2033 for industrial problem-solving.