Canada takes up to C$1.6B equity stake in AI firm Cohere

Canada is buying an equity stake of up to C$1.6 billion in Cohere, Prime Minister Mark Carney announced on October 29 at the opening of the Canada-European Union Summit, according to CBC News. The money flows through the Canada Development Investment Corporation and is paid out in stages tied to jobs and revenue targets.

The commitment lands inside Cohere's Series E, which the Toronto company is targeting at up to C$7 billion at a C$35.7 billion post-money valuation. Germany's Schwarz Group is leading the round. Nvidia and Bell are among the other investors.

Carney framed the move as sovereignty, not venture capital. "The most powerful AI systems are concentrated in a very small number of companies, in a very small number of countries," he said, calling the concentration a risk "to cost, to resilience and to sovereignty." He added that "this is the moment that will decide where AI is built, how AI is governed, and who AI serves."

In return, Cohere commits to keep its incorporation and headquarters in Canada, invest at least C$1.7 billion in Canadian computing infrastructure by 2030, and create at least 1,000 new high-paying technical jobs on the same timeline. The company currently employs more than 800 people. CEO Aidan Gomez said Cohere is "now the largest AI company outside of the United States and China" and is "choosing to grow Canada's technology future instead of someone else's."

AI Minister Evan Solomon pitched it as a message to founders: "Investing in Cohere sends a clear message: you should not have to leave Canada to build a company that succeeds around the world." Ottawa had previously committed C$240 million to Cohere under its 2024 Sovereign AI Compute Strategy; the new agreement sits on top of that.

The Series E has completed only an initial close so far, with the full committed total not yet disclosed.