The Canadian government has signed a memorandum of understanding (MOU) with Toronto-based artificial intelligence company Cohere Inc., marking a new step in its push to strengthen domestic AI innovation and modernize government operations.
The agreement aims to promote Canadian-developed AI technologies while exploring how artificial intelligence can be responsibly integrated into federal government services to improve efficiency and productivity.
The announcement comes under the leadership of newly elected Member of Parliament Evan Solomon, a former journalist who now serves as Canada’s Minister of Artificial Intelligence and Digital Innovation, as well as Minister responsible for the Federal Economic Development Agency for Southern Ontario.
In a news release Solomon said “There’s no better place to leverage the innovative technology of AI than here in our own backyard, and no better use than in the service of Canadians from coast to coast,”. He added that working with Canadian innovators like Cohere would help build “a more efficient, effective and productive public service” while ensuring Canada remains competitive in the rapidly evolving digital economy.
Founded in 2019, Cohere develops large language models and enterprise-focused AI tools. The company has grown quickly and is currently valued at approximately US$6.8 billion. Its partners include major Canadian and global firms such as Dell, Oracle, RBC and Bell.
Cohere’s co-founder and CEO, Aidan Gomez, said the collaboration highlights the strategic importance of AI for Canada’s future. Gomez said “AI will supercharge financial productivity, fortify national security and future-proof Canada’s assertiveness,”. “That’s why building this technology and developing the next generation of AI talent right here in Canada is essential.”
Prime Minister Mark Carney’s government has made artificial intelligence a central pillar of its economic strategy, committing to increased investment in AI training, adoption and commercialization across the country.
Joël Lightbound, Minister of Government Transformation, Public Works and Procurement, said the agreement also supports Canada’s digital independence. He said “This MOU with Cohere is an opportunity to discover how sovereign AI can strengthen public services, protect our digital sovereignty and create opportunities for Canadians,”.
Lightbound added that engaging with home-grown AI companies allows the federal government to better understand emerging technologies, ensure they are developed and deployed responsibly, and position Canada as a strong domestic market for Canadian AI solutions.
While the MOU does not involve a direct funding commitment, it signals closer collaboration between Ottawa and one of the country’s most prominent AI firms at a time when governments worldwide are racing to harness the economic and strategic potential of artificial intelligence.
