Canada is investing CAD 1.6 billion (about USD 1 billion) in the AI company Cohere, according to Prime Minister Mark Carney. Yahoo reports this based on Carney's announcement on Thursday. The investment is meant to strengthen a sovereign alternative to offerings from the US and China.
Background
Cohere was founded in Toronto in 2019. According to the report, the company focuses on models for businesses and governments rather than consumer applications. Cohere is led by Aidan Gomez, one of the co-authors of a foundational paper on modern AI systems.
Link to Germany
In May, Cohere announced plans to acquire the German AI firm Aleph Alpha, according to the source. The combined entity would have dual headquarters in Toronto and Berlin, backed by Ottawa and Berlin. For decision-makers in Germany, this is relevant because it raises the question of whether European and Canadian providers will increasingly act as alternatives to US platforms.
Assessment
Carney justified the investment with the risks of concentrating AI systems in a few companies. Whether this brings concrete benefits for companies in Germany, for example in availability, data protection or pricing, is open according to the available sources and depends on the company's further development.
Sources
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