Ottawa investing up to $1.6B in Canadian AI company Cohere

On Thursday, Carney called the partnership a concrete example of what Canada and Europe can build together.

He also said that, under the agreement, Cohere will remain Canadian.

Carney said the government is making the announcement on “a commercial basis, alongside private investors including Nvidia, Bell, and Germany’s Schwarz Group.”

Cohere CEO Aidan Gomez said at Thursday’s announcement the company, which was founded seven years ago, is now “one of the very few companies in the world building frontier AI technology at a global scale.”

He added that it’s the largest AI company outside the U.S. and China.

In a press release issued Thursday, the government said the funding would be provided in stages, with regular reporting on commitments made by the company.

Those commitments include creating at least 1,000 “new high-paying Canadian technical jobs” and committing at least $1.7 billion to building more computing infrastructure by 2030.

The government says Cohere will also maintain its Canadian headquarters and incorporation, invest in research partnerships, create opportunities for students and graduates and continue working with the Canadian AI Safety Institute.

“Cohere will now be able to develop far more advanced models and products, scale up its computing infrastructure, and expand its Canadian workforce to serve more businesses and governments in Canada and around the world,” the press release said.

“Building this capability at home ultimately means that Canadian businesses and governments will have more choice in how they adopt AI and greater control over their sensitive information.”

In 2024, the government announced it would provide up to $240 million to Cohere to boost its computing capacity. In 2025, Ottawa signed an agreement with the company to identify areas where AI can enhance public service operations.

Artificial Intelligence Minister Evan Solomon has pointed often to Cohere as an element of Canada’s strength in AI and has said that Canada is one of only a few countries with a large language model.

Solomon didn’t answer directly when asked by The Canadian Press whether there is a risk of Cohere leaving the country.

“Today is about providing access to capital to make sure that Canadian companies are built here, that they don’t go elsewhere, that we don’t plant the seed, water the seeds, grow the plant, and let someone else harvest it,” he said.

He also didn’t answer directly when asked whether Carney’s comments on trust meant he was saying some U.S. giants couldn’t be trusted.

“If we don’t build it, we’ve got to buy it from someone else, and if we don’t innovate here, we rent it from someone else and if we don’t make the rules here, we follow someone else’s,” Solomon said. “This is a unique opportunity for Canadians to get a seat at the table on building the future of AI.”

This report by The Canadian Press was first published Oct. 29, 2026.

— With files from David Baxter in Montreal

Anja Karadeglija, The Canadian Press

by The Canadian Press

Ottawa investing up to $1.6B in Canadian AI company Cohere

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