The key facts

  • Canada is investing CAN$1.6 billion ($1 billion) in the AI company Cohere
  • The investment is part of a CAN$7 billion round; the company’s valuation will reach CAN$35.7 billion
  • The announcement was made ahead of the Canada–EU summit in Montreal; the parties are working on aligning AI policy

A state investment in a national AI player

Canada will invest CAN$1.6 billion (about $1 billion) in Cohere, an artificial intelligence company. Prime Minister Mark Carney announced the move on Thursday, presenting it as a step toward building sovereign alternatives to US and Chinese dominance in AI. In his words, “this is a moment that will decide where AI is built, how it is governed, and whom it serves,” and the concentration of AI systems in the hands of a few companies carries systemic risks: such companies may call themselves “global,” but “in practice they often turn out to be national.”

Cohere and the transatlantic strategy

Cohere was founded in Toronto in 2019 and positions itself apart from giants like OpenAI and Anthropic, betting on models for businesses and government customers rather than consumer applications. It is led by Aidan Gomez, a co-author of the landmark paper that laid the foundations of modern AI systems. In May, the company announced the acquisition of the German developer Aleph Alpha: the combined structure will have dual headquarters in Toronto and Berlin, with the deal backed by Ottawa and Berlin. In June, Gomez warned that Europe risks “complete technological irrelevance” if it fails to build its own sovereign AI capabilities.

Context of the funding round and the EU summit

At Carney’s announcement, Gomez explained that the federal investment is part of a CAN$7 billion funding round that will raise the company’s valuation to CAN$35.7 billion. “We are now the largest AI company outside the US and China,” he said, promising that Cohere will remain “always rooted in Canada.” The statement came ahead of a major Canada–EU summit in Montreal: European Commission President Ursula von der Leyen, in a speech at a Montreal research institute, mentioned the Cohere–Aleph Alpha merger, noting “strong interest in joining forces.” Brussels and Ottawa are working toward an unprecedented level of cooperation, including aligning AI policy.