The federal government’s artificial intelligence strategy has been highly anticipated by tech companies, researchers, and civil society groups.Shawn Kilpatrick/The Canadian Press
Ottawa to launch new investment fund to support artificial intelligence The startup is adding millions of dollars to the existing program as part of its upcoming AI strategy, according to a source familiar with the matter.
The new Canadian Tech Growth Fund will take equity stakes in companies to support their growth, the source said.
The Globe and Mail is not identifying the source because they are not authorized to speak publicly on the strategy, which is not to be officially announced until later this week.
The source said the strategy would also boost a $300 million program called the AI Compute Access Fund, which helps Canadian companies subsidize the costs of building and running AI models. That program was first announced in April 2024 under former Prime Minister Justin Trudeau. When it opened a year later, it was inundated with applications, as these costs could hinder the growth of new companies.
Some applicants criticized the program to walk very slowlyAnd Ottawa announced the first disbursements earlier this month, awarding $66 million to 44 small and medium-sized businesses.
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The long-delayed AI strategy, which was initially targeted for release in late 2025, has been highly anticipated by tech companies, researchers and civil society groups.
CBC reported details of the AI strategy on Monday, based on a draft document.
The strategy will also use the Canada Strong Fund to invest in AI companies, the source said. First announced in April, the sovereign wealth fund has an initial budget of $25 billion, to be deployed over three years. The fund is linked to the government’s goal of building large infrastructure projects such as ports and natural resource development.
Prime Minister Mark Carney has also tasked the federal Major Projects Office with Developing sovereign cloud computing capacity Ensuring Canadian-controlled infrastructure for building and operating AI models.
the critics have made a mistake Canada Strong Fund for being short on details and not following the model of sovereign wealth funds in Norway and Singapore.
Meanwhile, the Canadian Tech Growth Fund will serve as another investment vehicle, in addition to programs from the Business Development Bank of Canada and the federal government’s Strategic Innovation Fund.
The Tech Growth Fund will target smaller investments, while the Canada Strong Fund will focus on higher priced deals, the source said.
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Adoption is also a big topic of strategy. It aims to significantly boost the use of AI among domestic businesses, which was only about 12 percent in 2025, and will provide free AI literacy training to Canadians.
According to the source, the government will also consult on AI transparency issues, including discussions on watermarking AI-generated media and disclosures about automated decision making.
Separately, The Globe reported on Monday that the strategy This will include up to $100 million Expanding a project to share health data so researchers can use it to improve patient outcomes and reduce strain on the system.
In developing and selling AI strategies to Canadians, the government must walk a fine line between exploiting the potential economic benefits of the technology while also protecting Canadians from the downsides.
Opinion polls show that Canadians have a number of concerns about AI, including the possibility of job losses, the spread of misinformation and how over-reliance on the technology will affect learning. a leaguer survey Last August found that 34 per cent of Canadian respondents said AI is good for society, while 36 per cent believe it is harmful. A separate Ipsos survey from last year said Canadians are more nervous than excited About AI
Last September, AI Minister Ivan Solomon appointed a task force to provide recommendations on a new strategy within 30 days and launched a public consultation.
Ottawa announced six pillars of its AI strategy at the spring economic update in April, including modern privacy and online security laws, AI skills training and increasing trust through increased adoption. The government wants to encourage the development of sovereign AI infrastructure to reduce reliance on foreign players, and help establish partnerships with allies to help Canadian companies access global markets, among other goals.
Canada has been a strong player in AI research and an attractive destination for talent due to the Pan-Canadian AI Strategy, launched in 2017, which supported three national research centres.
But as generic AI has exploded over the past few years, the money has largely gone to US tech giants. This includes companies making AI models, such as OpenAI and Anthropic, chipmakers such as Nvidia Corp, and cloud computing providers such as Microsoft Corp and Amazon Web Services Inc.
Canadian talent has also played an important role in some of these companies. Ilya Sutskever, who co-founded OpenAI, studied at the University of Toronto. Anthropic recently hired Andrzej Karpathy, who also studied at Canadian universities. Even some AI stars who have remained in Canada have been recruited by American tech giants, such as Sanja Fiedler, who leads Nvidia’s research lab in Toronto.