Canada takes an equity stake of up to C$1.6 billion in AI lab Cohere

A G7 government is now a shareholder in a frontier AI lab. Prime Minister Mark Carney announced on Oct. 29, 2026 that the Government of Canada will make an equity investment of up to C$1.6 billion in Cohere, the Toronto-founded company that builds AI systems for businesses and governments, according to the Prime Minister's Office.

The government calls it "a commercial investment, announced alongside private investors, including NVIDIA, Bell, and Schwarz Group." The money will be paid in stages, with regular reporting on Cohere's progress against its commitments.

Strings attached

In return, Cohere will create at least 1,000 new high-paying Canadian technical jobs by 2030, commit at least C$1.7 billion to additional computing infrastructure in Canada by 2030, and maintain its Canadian incorporation and headquarters, the government said. It will also keep working with the Canadian AI Safety Institute.

"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 the release. Cohere CEO Aidan Gomez said organisations "need solutions that give them greater control over their data, infrastructure, and how AI is deployed."

The round behind it

The government is joining a funding round led by Schwarz Group, owner of the Lidl and Kaufland retail chains, that targets $7 billion and would value Cohere at about $36 billion, CBC reported, citing Reuters. Cohere has completed only an initial close and did not say how much has been committed so far, per CBC.

Cohere said annual recurring revenue grew 165% year over year as of the third quarter and that its customer count has grown to 300, CBC reported. The money will fund model development, products for regulated industries and computing infrastructure.