Canada to Take Up to C$1.6 Billion Equity Stake in AI Firm Cohere

Prime Minister Mark Carney announced on Thursday that Canada's federal government will make an equity investment of up to C$1.6 billion in Cohere, the Toronto-based enterprise AI company, alongside private investors including Nvidia, Bell and Germany's Schwarz Group. According to thegovernment's announcement , it is a commercial investment that will be made in stages, with consistent reporting regularly on its progress.

The deal puts the government on Cohere's cap table, not just in its customer list. Cohere is raising up to C$7 billion in new funding, including the federal investment,The Logic reported , with Schwarz Group leading the round. Cohere put the round's valuation at C$35.7 billion, up from about $7 billion in September 2025, according to Bloomberg Law. Bloomberg put the federal investment at up to US$1.14 billion, as The Next Web reported .

In return, Cohere has made several commitments, according to the government. It will create at least 1,000 high-paying technical jobs in Canada and invest at least C$1.7 billion in Canadian computing infrastructure, both by 2030. It will also maintain its Canadian incorporation and headquarters, fund research partnerships, and continue 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.

The money will come through the Canada Development Investment Corporation, a Crown corporation that manages assets for the government, AI Minister Evan Solomon told BetaKit . Carney made the announcement on the first day of the Canada-European Union Summit.

According to Cohere's release , Bell Ventures, Bullhound Capital and the Government of Canada are new investors, while Inovia Capital, Nvidia and Prosperity7 Ventures are returning. Cohere said its customer count grew 20-fold over the last year to 300, including Bell Canada, Fujitsu, RBC and TD Bank. The company also said its annual recurring revenue grew more than 165% in the year to the end of September, but it did not disclose a revenue figure. AI Briefing News has not independently verified Cohere's growth claims.

Neither the government nor Cohere said what percentage of the company Canada will own, how much each investor is contributing, how much Cohere has raised so far, or what happens if Cohere misses its commitments. The government also did not publish the schedule for its staged payments.

Cohere announced in April that it would merge with Germany's Aleph Alpha, and Carney described the partnership as a concrete example of what Canada and Europe can build together, Global News reported .