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Ottawa takes ownership stake in Cohere, up to $1.6 billion federal investment
Ottawa takes an ownership stake in AI firm Cohere through up to $1.6 billion federal investment
Key points
- Cohere says its client base grew 20 times over the past year to 300 customers.
- Cohere has a valuation of $36 billion and more than 60 investors, according to CB Insights.
- Cohere merged with Berlin-based Aleph Alpha in September and has committed to keeping its headquarters in Canada.
Why it matters. The stake gives Ottawa a say in Cohere's future, and analysts say supporting the company provides an alternative to using American and Chinese AI.
Ottawa said on Thursday it will take an equity stake in Toronto-based AI firm Cohere, with funding of up to $1.6 billion. CEO Aidan Gomez called it a vote of confidence in Canada's ability to build world-leading technology. Cohere plans to create 1,000 Canadian technology jobs and invest $4 billion in research and infrastructure by the end of 2031, while AI Minister Evan Solomon said the government will now have a say in its future.
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Ottawa takes ownership stake in Cohere, up to $1.6 billion federal investment
The federal government announced on Thursday that it will invest up to $1.6 billion in Cohere, a Canadian artificial intelligence company. The investment gives Canadian taxpayers an ownership stake in the firm. Cohere CEO Aidan Gomez said the company is now the largest AI company outside the United States and China. The move is presented as a step toward digital sovereignty, as Cohere competes with major American and Chinese AI firms. Gomez described the investment as a vote of confidence in Canada's ability to build world-leading technology.