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

The Canadian government has committed up to C$1.6 billion, about US$1.1 billion, for an equity stake in the Toronto-based company. Ottawa is participating alongside private investors in a larger funding round, and the commitment is subject to the announced terms. Cohere must keep its headquarters in Canada and invest at least C$1.7 billion in domestic computing infrastructure by 2030. Officials frame the investment as a way to fund growth while keeping advanced AI capability inside Canadian borders. Private investors stay in the larger round, so the government stake sits beside outside capital rather than replacing it. For founders, the terms show that governments may attach residency and local compute commitments to public capital. Companies selling into public-sector or regulated markets should plan for sovereignty requirements in hosting, data location and vendor choice.