Canada to Drive Billions in Investments to Build Domestic AI Compute Capacity at Home
December 11, 2024
Strategy will invest in cutting-edge AI infrastructure and supercharge innovation to strengthen Canada’s AI advantage
Compute is the technology that powers artificial intelligence (AI). It’s the chips and the data centres, the backbone of this transformative new technology. Access to cutting-edge compute infrastructure is crucial for securing Canada’s AI advantage, empowering researchers and industries to thrive.
On December 5, the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, officially launched the Canadian Sovereign AI Compute Strategy. The Strategy will invest up to $2 billion, as previously announced in Budget 2024, to meet three key objectives:
- Up to $700 million to grow Canadian AI champions by leveraging investments in new or expanded data centres through the AI Compute Challenge that is launching today
- Up to $1 billion to build transformational public computing infrastructure
- Up to $300 million to provide affordable access to compute power for small and medium-sized enterprises (SMEs) through the AI Compute Access Fund
This strategy will ensure that Canadian businesses, innovators and researchers have access to the compute capacity they need to develop made-in-Canada AI products and drive frontier research.
Developing cutting-edge AI solutions across all sectors of our economy helps Canada remain a destination of choice for investment and top talent. That’s why Canada is committed to building a strong and secure AI compute capacity to fuel the economy of the future.
Quotes
“The strategy we’re announcing today is a major step toward securing Canada’s place as a global AI leader. We’re proud to be a driving force in the worldwide ecosystem, and by increasing access to domestic and secure compute capacity, we will help businesses, innovators and researchers boost the Canadian economy and stand out on the world stage. This is about Canada showing its ambition, supporting Canadian innovation and investing in the economy of the future.”
– The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry
Quick facts
- The public consultations on the Canadian Sovereign AI Compute Strategy ran over the summer of 2024 and received input from more than 1,000 stakeholders from research, industry and civil society through in-person and virtual round table discussions and an online survey.
- The Government of Canada is supporting the responsible development and adoption of AI across the Canadian economy through a suite of measures—including the Canadian Artificial Intelligence Safety Institute, the Artificial Intelligence and Data Act (Bill C-27) and the Voluntary Code of Conduct on the Responsible Development and Management of Advanced Generative AI Systems.
- The Government of Canada is allocating the full $2 billion from Budget 2024 through a strategy that will meet the short-term, medium-term and long-term compute needs of our AI researchers, developers and innovators:
- Up to $700 million will support projects from industry, academia and the private sector to build Canadian AI data centres. There will be an application process for these funds, with priority given to Canadian projects that can demonstrate a high rate of return on public investment, sustainability and other markers of success.
- Up to $1 billion will be allocated to building large sovereign supercomputing infrastructure as well as a smaller secure computing facility.
- Up to $300 million will go to the AI Compute Access Fund to support the purchase of AI compute resources by Canadian innovators, businesses and industry. This will meet the near-term needs of business as the government helps crowd in private capital to build domestic compute capacity. More details on the Fund will be shared when the program is officially launched in spring 2025.
- Canada’s AI sector is a key job creator and driver of productivity, innovation and economic growth:
- In 2022–23, there were over 140,000 actively engaged AI professionals in Canada, an increase of 29% compared to the previous year.
- Canada has 10% of the world’s top-tier AI researchers, the second-highest number in the world.
- Canada ranks first globally for year-over-year growth of women in AI (67% growth in 2022–23 alone), first in the G7 for year-over-year growth of AI talent and, since 2019, first in the G7 for the number of AI-related papers published per capita.
- The number of AI patents filed by Canadian inventors increased by 57% in 2022–23 compared to the previous year—nearly three times the G7 average of just 23% over the same period.
- In 2022, the Canadian AI sector attracted over $8.6 billion in venture capital, accounting for nearly 30% of all venture capital activity in Canada.
- Canada ranks third in the G7 in total funding per capita raised for AI companies, with more than 670 Canadian AI start-ups and 30 Canadian generative AI companies receiving at least one investment deal valued at more than US$1 million since 2019.
Related Story
Canadian Centre for Cyber Security Releases National Cyber Threat Assessment 2025-2026
The Canadian Centre for Cyber Security (Cyber Centre) has released its National Cyber Threat Assessment 2025-2026 (NCTA 2025-2026). As with previous assessments, it provides a snapshot of cyber threats affecting Canada and Canadians and forecasts how they may evolve in the coming years. The Cyber Centre’s flagship report helps build Canada’s resilience to cyber threats.
