Canada announces up to $1.6 billion equity investment in Cohere to scale secure, sovereign AI

Prime Minister Mark Carney announced the Government of Canada’s commitment to invest up to approximately $1.6 billion in Cohere through an equity stake. The commercial investment was announced alongside private investors, including NVIDIA, Bell and Schwarz Group. Founded in Toronto, Cohere builds secure AI systems for businesses and governments, giving them more control over where sensitive data is stored, how it is used and who can access it. Its recent merger with Germany’s Aleph Alpha brings together Canadian and German AI expertise.

The planned investment is intended to help Cohere scale and compete in the global AI market. The company will be able to develop more advanced models and products, expand its computing infrastructure and grow its Canadian workforce to serve more businesses and governments at home and around the world. The federal government says building this capacity in Canada will give Canadian businesses and governments more choice in adopting AI and greater control over sensitive information. Canada’s stated aim is to develop advanced AI at home, help businesses put it to work and create opportunities for Canadian talent. Through its equity stake, the government will also share in opportunities arising from Cohere’s growth.

As part of the investment, Cohere has committed to create at least 1,000 new high-paying Canadian technical jobs by 2030 and spend at least $1.7 billion on additional computing infrastructure in Canada by 2030. It will maintain its Canadian incorporation and headquarters, invest in research partnerships in Canada and create opportunities for students and recent graduates. The company will also continue working with the Canadian AI Safety Institute to champion the safe development and use of advanced AI. The government says the investment will be made in stages, with regular reporting on progress against the company’s commitments, including jobs and investment in Canada. It says this approach will provide capital for expansion while holding Cohere accountable for delivering benefits to Canadians.

Carney said the investment is about choice, security and Canadians’ ability to live as they choose. He said genuine sovereignty depends on the ability to build, adopt and govern AI on Canada’s own terms. As Cohere scales its models and operations, he said, businesses and governments will have greater control over where sensitive data is stored, how it is used and who can access it. He said Canada needs the technology, Cohere’s growth has been extraordinary, and its success is in everyone’s interest; all Canadians will now have a share in that success.

Evan Solomon, Minister of Artificial Intelligence and Digital Innovation and Minister responsible for the Federal Economic Development Agency for Southern Ontario, said it is not enough for successful companies to start in Canada: they should grow and build here and create good jobs. He said the government wants to give Canadian entrepreneurs the conditions to turn ambitious ideas into globally successful businesses. The investment, he said, sends the message that people should not have to leave Canada to build a company that succeeds around the world, and backs Canadian talent while giving Canadians a stake in that success.

Aidan Gomez, Cohere’s co-founder and chief executive officer, said the company was founded in Canada with the belief that the country could build AI companies able to compete at the highest global level. He said the investment will accelerate that vision by expanding Cohere’s ability to attract world-class talent, build frontier AI systems and develop secure, sovereign technology in Canada for customers worldwide. As AI becomes increasingly important to economic growth and competitiveness, he said, organizations need solutions that give them greater control over their data, infrastructure and how AI is deployed. Gomez said Cohere is proud to grow from Canada, create high-value jobs and innovation at home, and grateful for the federal government’s support.

The government’s quick facts say Canada’s equity investment will total up to approximately $1.6 billion and be made in stages. Cohere was founded in Toronto and builds secure AI systems for businesses and governments that need greater control over their data. Its recent merger with Aleph Alpha brings Canadian and German AI expertise together. Investments from NVIDIA and Schwarz Group in this financing round strengthen Cohere’s international partnerships and its ability to serve businesses and governments in Canada and around the world.