Feds to invest up to $1.6 billion in Canadian AI company Cohere in its $7-billion fundraise

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The client was not given the opportunity to put restrictions on the content or review it prior to publication. by BDCFeds to invest up to $1.6 billion in Canadian AI company Cohere in its $7-billion fundraiseThe round will value Cohere at $35.7 billion, making it Canada’s most valuable private tech companyPrime Minister Mark Carney announces a federal investment of up to $1.6 billion in artificial intelligence company Cohere in Montreal on Oct. 29, 2026. Photo by Alexis Aubin/AFP via Getty ImagesThe federal government says it will invest up to $1.6 billion in Canadian artificial intelligence startup Cohere Inc. as part of the company’s planned $7-billion fundraising round, which is the largest-ever private capital raise in Canada.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 round will value Cohere at $35.7 billion, making it Canada’s most valuable private tech company.Ottawa’s investment in Toronto-based Cohere comes alongside the release of its national security strategy, the first in more than two decades, which said Canada’s sovereignty depends on eight key sectors, including emerging technologies such as AI, critical minerals and defence.This advertisement has not loaded yet, but your article continues below.“We’re not waiting for the future of AI to be decided somewhere else by those we don’t know or by whom we don’t trust. We are building it right here, the right way,” Prime Minister Mark Carney said in a speech on Thursday. “Cohere has grown from a Toronto startup into a global company. It’s a Canadian success story … and now, Canada has a stake in it,” he said.Get the latest headlines, breaking news and columns.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 Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe government is investing in Cohere on a commercial basis alongside Nvidia Corp., BCE Inc. and Germany’s Schwarz Group, which is leading the round, as well as others.Carney said the investment will allow Cohere to create 1,000 new high-paying Canadian technical jobs and direct at least $1.7 billion in new computing infrastructure in the country by 2030. The agreement also ensures that Cohere will “stay Canadian,” he said.The company will use the new funds to advance its large language models and AI tools made for business and government and invest in the infrastructure needed to train its models, Cohere chief financial officer Francois Chadwick said in a statement.“We will continue to meaningfully scale across North America, EMEA, and APAC to meet growing customer demand,” he said.Cohere in September completed its acquisition of German AI startup Aleph Alpha GmbH, which it said will create a well-positioned transatlantic AI “powerhouse” to scale its business in global markets.Cohere has promoted its systems as alternatives to Big Tech systems and China’s open-source models as governments worldwide rush to advance their sovereign tech.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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