Canada takes equity stake in Cohere to back secure, sovereign AI systems

Prime Minister Mark Carney announced an equity investment of up to C$1.6 billion in Cohere, to be made in stages and alongside private investors including Nvidia, Bell and Schwarz Group. In return, Cohere committed to at least C$1.7 billion in additional computing infrastructure in Canada by 2030. The government says it will share in the company's growth as a shareholder. The move follows Canada's national AI strategy launched in June and the new National Council on Artificial Intelligence launched in October. Cohere's recent merger with Aleph Alpha also combines Canadian and German AI teams, which the release presents as part of a sovereign AI push. For founders, this is a clear signal that governments will pay for domestic model providers that offer data residency and control. Companies selling into Canadian public agencies or regulated sectors should expect buyers to ask where data is stored and processed.