Cyber firm Tailscale uses Canadian roots to court clients wary of U.S. power

Skip to Content News Archives Economy Defence Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Defence Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Defence Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeInnovationNewsCyber firm Tailscale uses Canadian roots to court clients wary of U.S. powerThe Canadian tech company is trying to tap into anxiety about overdependence on U.S. AI services and cloud platformsAuthor of the article:The company’s engineers will work directly with its customers during implementation, marking a return to a more traditional approach to software, CEO Avery Pennarun said. Photo by James MacDonald/BloombergCybersecurity company Tailscale Inc. says it’s trying to use its Canadian identityhttps://financialpost.com/tag/canadian-business/ as an advantage to win business from governments and enterprises concerned about American AI security.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe Toronto-based company, which offers technology for virtual private networks, is making a multimillion-dollar push to build sovereign, on-premise versions of its networking software, and is concentrating development in Canada and Europe.This advertisement has not loaded yet, but your article continues below.The company has hired Patricia Prewitt, a former manager at Google X’s Moonshot Factory, to lead its sovereign artificial-intelligence push and plans to add at least 50 more people for the project, with the majority of those jobs in Canada.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try again“It started to become a real advantage to emphasize that you’re a Canadian company,” chief executive Avery Pennarun said. “You start going into Europe and they’re like, ‘I will buy anything, but not American technology.’”United States President Donald Trump has antagonized allies such as Canada with tariffs and threats to their sovereignty, and some countries are working to reduce their reliance on the U.S. for trade, technology and security. Tailscale is trying to tap into anxiety about overdependence on U.S.-based AI services and cloud platforms, such as those sold by Anthropic PBC and Alphabet Inc.In June, Anthropic temporarily suspended access to leading-edge models Mythos 5 and Fable 5 after a U.S. government directive to prohibit the use of them by foreign nationals. Although the ban didn’t last long, the move highlighted the power of American authorities to cut off companies and governments outside the U.S. from AI services.This advertisement has not loaded yet, but your article continues below.“It’s amazing to just be able to walk into a conversation and not scare people because Canada is small and we’re never going to be the monopolist that crushes your country,” Pennarun said.Tailscale already serves as the network layer for many AI companies, but demand from sovereign data centre builders in Canada, Europe and Asia nudged the company toward developing independent, self-hosted deployments where customers maintain full control.The company’s engineers will work directly with its customers during implementation, marking a return to a more traditional approach to software, Pennarun said.Tailscale’s revenue has more than tripled since it was valued at around US$1.5 billion last year.We apologize, but this video has failed to load.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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