Ottawa Invests Up to $1.6B in Canadian AI Company Cohere Prime Minister Mark Carney announced up to $1.6 billion in federal funding for Canadian AI company Cohere, alongside private investors including Nvidia and Bell, with commitments to create 1,000 jobs and build computing infrastructure. Prime Minister Mark Carney announced Thursday that the federal government will invest up to $1.6 billion in Canadian artificial intelligence company Cohere. The announcement was made in Montreal as Carney welcomed European Union leaders to a summit aimed at forging closer ties between Canada and Europe. Government Invests In Cohere With Private PartnersCarney said the government is making the investment on a commercial basis, alongside private investors including Nvidia, Bell, and Germany's Schwarz Group. We are not waiting for the future of AI to be decided somewhere else by those we do not know or by whom we do not trust, Carney said. We are building it right here in the right way.In April, Cohere announced it would merge with Germany's Aleph Alpha and said the company would be anchored in Germany and Canada. Carney called the partnership a concrete example of what Canada and Europe can build together. Cohere CEO Aidan Gomez said at the announcement that 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.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, the release added. 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 often pointed to Cohere as an element of Canada's strength in AI, saying Canada is one of only a few countries around the world with a large language model. The funding announcement comes as Canada and the European Union hold a summit in Montreal, where Prime Minister Carney and European Commission President Ursula von der Leyen floated associate member status as a potential new framework for Canada-EU relations.Cohere Merges With Aleph Alpha To Form Transatlantic AI ChampionThe investment in Cohere is part of a broader push by the Canadian government to support domestic AI capabilities and reduce reliance on foreign technology. Cohere, founded in 2019, has become one of Canada's most prominent AI firms, specializing in large language models for enterprise use. The merger with Aleph Alpha, announced in April, was positioned as a way to create a transatlantic AI champion. The combined company is expected to have operations anchored in both Germany and Canada.Nvidia, a leading AI chipmaker, is among the private investors participating in the funding round alongside Bell and Schwarz Group. The involvement of Nvidia signals confidence in Cohere's technology and its potential for growth. The government's staged funding approach includes regular reporting requirements to ensure Cohere meets its commitments. The 1,000 new jobs are expected to be high-paying technical positions, contributing to Canada's AI workforce.The $1.7 billion commitment to computing infrastructure by 2030 is aimed at ensuring Cohere has the computational resources needed to train and deploy advanced AI models. This is critical as competition in the AI sector intensifies globally. Cohere will maintain its Canadian headquarters and incorporation, ensuring that the company remains a Canadian entity even as it expands internationally. The government emphasized that this will give Canadian businesses and governments more choice and control over their AI adoption and sensitive data.The Canadian AI Safety Institute will continue to work with Cohere, reflecting the government's focus on responsible AI development. Research partnerships and student opportunities are also part of the commitments. This latest investment builds on previous federal support for Cohere. In 2024, the government pledged up to $240 million to boost the company's computing capacity.In 2025, an agreement was signed to explore how AI can improve public service operations. Minister Evan Solomon has repeatedly highlighted Cohere as a key example of Canada's AI strengths. He has noted that Canada is one of only a few countries with a large language model of its own. The announcement was made on October 29, 2026, in Montreal, during the Canada-EU summit.The event underscores the growing importance of AI in international relations and economic competitiveness. Cohere's CEO Aidan Gomez, who co-founded the company seven years ago, was present at the announcement. The company has grown to become a global player in frontier AI technology. The government's investment is subject to regular reporting on commitments, ensuring accountability and transparency.The funding will be provided in stages, with milestones tied to job creation and infrastructure investment. The private investors involved include Nvidia, a major player in AI hardware; Bell, a Canadian telecommunications company; and Germany's Schwarz Group, a retail giant. Their participation highlights the commercial viability of Cohere's technology. The merger with Aleph Alpha is seen as a strategic move to create a stronger competitor in the global AI market.The combined entity will have a presence in both Germany and Canada, leveraging talent and resources from both countries. Carney's remarks emphasized the importance of building AI capabilities domestically. He said the partnership between Canada and Europe is a concrete example of what can be achieved together. The government's press release stated that Cohere will be able to develop far more advanced models and products, scale up its computing infrastructure, and expand its Canadian workforce.This will allow the company to serve more businesses and governments in Canada and around the world. Building this capability at home means Canadian businesses and governments will have more choice in how they adopt AI and greater control over their sensitive information, according to the release. The investment is part of a broader strategy to position Canada as a leader in AI. The government has been actively supporting the sector through funding, partnerships, and policy initiatives.Canada EU Summit Discusses Closer Ties And Associate StatusThe Canada-EU summit in Montreal also featured discussions on associate member status, a proposal floated by Carney and von der Leyen. This suggests a deepening of ties between Canada and Europe beyond just AI. Cohere's technology is used by enterprises and governments for natural language processing and other AI applications. The company's large language models are among the few developed outside the United States.The funding announcement is expected to have a significant impact on Canada's tech sector, creating jobs and attracting further investment. It also signals Canada's commitment to maintaining sovereignty over critical AI technology. The government's staged funding approach ensures that Cohere meets its commitments, with regular reporting to track progress. The commitments include job creation, infrastructure investment, and maintaining Canadian headquarters.The involvement of Nvidia, a leading AI chipmaker, is particularly notable as it provides both capital and strategic support. Bell and Schwarz Group bring additional resources and market access. The merger with Aleph Alpha is expected to close following regulatory approvals. The combined company will be headquartered in both Germany and Canada, with a focus on developing frontier AI.Cohere's CEO Aidan Gomez expressed confidence in the company's ability to compete globally. He said Cohere is one of the very few companies in the world building frontier AI at a global scale. The government's investment is being made on a commercial basis, alongside private investors. This means it is expected to generate returns and is not just a subsidy.The announcement was made during a busy news day that included other major stories, but the AI investment stands out as a significant policy move. It highlights the government's focus on technology and innovation. The funding will support Cohere's efforts to develop more advanced AI models and products. It will also help the company scale its computing infrastructure to meet growing demand.Canadian AI Safety Institute To Work With CohereThe Canadian AI Safety Institute will continue to collaborate with Cohere on safety and ethical considerations. This is part of the government's commitment to responsible AI development. Research partnerships and student opportunities are also part of the commitments, ensuring that the investment benefits the broader Canadian AI ecosystem. The government's previous support for Cohere includes the $240 million announced in 2024 and the 2025 agreement on public service AI.This latest investment builds on that relationship. Minister Evan Solomon has been a vocal supporter of Cohere and Canada's AI sector. He has noted that Canada is one of only a few countries with a large language model. The Canada-EU summit in Montreal is focused on strengthening ties between the two regions.The AI investment is a concrete example of that cooperation. Cohere's merger with Aleph Alpha is a key part of its strategy to become a global AI leader. The combined company will have a strong presence in both Europe and North America. The investment is subject to regular reporting, ensuring transparency and accountability.The government will track Cohere's progress on job creation and infrastructure investment. The private investors include Nvidia, Bell, and Schwarz Group. Their participation demonstrates confidence in Cohere's technology and business model. The announcement was made on October 29, 2026, in Montreal.It is a significant development for Canada's AI industry and for Canada-EU relations.