Canadian government funding for AI development to benefit U.S. company, critics note

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American company CoreWeave Inc. is, in effect, the indirect recipient of the funding as it will be building a data centre in Canada for Toronto-based Cohere Inc.

According to an Innovation, Science and Economic Development official, the $240-million will be used by Cohere to purchase capacity for its own compute needs at the data centre that CoreWeave will build.of the first investment made through its sovereign artificial-intelligence compute strategy, a $2-billion program to help Canadian companies access and build the infrastructure necessary to train and run AI models and applications.

While the government described the $240-million as an “investment” in Cohere, that’s not entirely accurate. According to an ISED official, the money will be used by Cohere to purchase capacity for its own compute needs at the data centre that CoreWeave will build. The official said that the funding, along with an undisclosed commitment from Cohere, helped give CoreWeave the confidence to build a data centre in Canada.

CoreWeave stands to benefit in two ways. Not only could Cohere spend up to $240-million for compute at the data centre, Mr. Dobbs said, but Canadian companies that take advantage of the $300-million in subsidies for their own compute costs could then spend it at CoreWeave’s facility.

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