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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.

Minister of Artificial Intelligence and Digital Innovation Evan Solomon speaks during the Canada 2020 conference in Ottawa on Tuesday, June 10, 2025. THE CANADIAN PRESS/Spencer Colby
Minister of Artificial Intelligence and Digital Innovation and Minister responsible for the Federal Economic Development Agency for Southern Ontario Evan Solomon leaves a caucus meeting on Parliament Hill in Ottawa on Wednesday, May 28, 2025. THE CANADIAN PRESS/Sean Kilpatrick

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.