Ottawa to invest up to $1.6B in Cohere

The federal government plans to invest up to $1.6 billion in Toronto-based artificial intelligence company Cohere, Prime Minister Mark Carney announced Thursday in Montreal.

The government described the equity stake as a commercial investment made alongside private investors, including NVIDIA, Bell and Germany’s Schwarz Group. Reports from The Logic and The Globe and Mail put Cohere’s valuation at about $35.7 billion after the financing. The round is led by Schwarz Group and targets $7 billion, according to those reports.

“Canada’s investment in Cohere is an investment in choice, in security, and in our ability to live our lives as we choose,” Carney said in a statement. He said true sovereignty now depends on the ability to build, adopt and govern AI on Canada’s own terms.

The government said the money will be paid in stages, with regular reporting on progress against Cohere’s commitments, including jobs and investment in Canada. Cohere has committed to remain incorporated and headquartered in Canada and to invest at least $1.7 billion in Canadian computing infrastructure by 2030, according to reports on the deal.

Evan Solomon, the minister of artificial intelligence and digital innovation, said the investment sends a message that entrepreneurs should not have to leave Canada to build a company that succeeds around the world. “We are backing Canadian talent and giving Canadians a stake in that success,” he said.

Cohere chief executive and co-founder Aidan Gomez said the investment will help the company attract talent, build advanced AI systems and develop secure technology from Canada. Cohere builds AI systems for businesses and governments that give organizations more control over where sensitive data is stored and who can access it.

This is not Ottawa’s first investment in the company. The government committed up to $240 million in December 2024 to expand Cohere’s computing capacity, a deal it finalized in March 2025. In May, Cohere announced a deal to acquire German AI firm Aleph Alpha, creating a combined company with dual headquarters in Toronto and Berlin.

Cohere has been busy on several fronts. Earlier this month, we reported that Cohere will buy cybersecurity firm Aisle and form Cohere Cyber. Days ago, Cohere flagged an Alibaba Qwen model sending a file to China.

Observers noted that Cohere competes in a capital-intensive industry where profits have been hard to find. The government said that by taking an equity stake, Canada will share in the company’s success if it grows.

Details such as the exact size of each payment, the share of the company the government will hold and the timing of the stages were not spelled out in the announcement. The prime minister’s office said the investment is part of a broader effort to build advanced AI at home and help Canadian businesses put it to work.

The announcement came as Carney was in Montreal for the Canada-EU summit, where Ottawa is pitching closer ties with Europe on technology and security. Read our report on the Montreal summit.

Sources: Prime Minister’s Office, CBC News, Global News, The Logic.

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