Canada to Invest $1.1 Billion in AI Firm Amid EU Push

Canada will invest up to 1.6 billion Canadian dollars, or 1.1 billion US dollars, in artificial intelligence company Cohere. The funding was announced by Prime Minister Mark Carney on Thursday in Montreal. Carney stated that the company would keep its Canadian identity. It will also spend at least 1.7 billion Canadian dollars, or 1.2 billion US dollars, on new computing infrastructure within the country.

The move comes as Carney works to diversify Canada’s economy. In 2025, the United States accounted for 71.7% of Canada’s merchandise exports. Carney aims to double exports to other nations over the next decade. He cited the need to prevent foreign governments and technology firms from dictating Canadian choices.

Carney met with Ursula von der Leyen, the president of the European Commission, to discuss a new framework called the Alliance for the Future. The two leaders proposed that Canada become the first associate member of the European Union. This status would not grant full membership due to geographic constraints. Von der Leyen described it as an association without accession.

The alliance plans to cover critical minerals, resilient supply chains, defense, and security. Von der Leyen said other like-minded countries are welcome to join the group. She noted that economic relationships are increasingly used as instruments of pressure. She said, When trade becomes a tool of economic pressure, it is families that pay the price, from the supermarket shelf to the cost of a new car.

The United States has reacted to the potential deal. President Donald Trump suggested the arrangement could be a hostile act. He threatened tariffs on Europe if he considered it unfriendly. The White House stated on Thursday that US trade officials have held discussions with Canadian counterparts in recent days. A senior Canadian government official told reporters that the closer relationship reflects longstanding shared interests rather than a direct move against the US.

The two sides will finalize an agreement on Friday. This deal will give Canadian companies, startups, and researchers access to Europe’s network of 12 supercomputers. The move is designed to strengthen cooperation on artificial intelligence. Carney said Canada will not wait for the future of AI to be decided elsewhere by people it does not know or trust.

Canada is currently the only non-European country in the EU’s 150 billion euro SAFE defense procurement program. This allows Canadian firms to participate in joint European military purchases. Some EU member states, including France and Germany, have questioned the associate member designation. France is pushing for strict Made in Europe rules that could limit Canadian access to future defense spending.

Von der Leyen said the value of EU imports of Canadian critical raw materials rose 62% last year to 3.3 billion euros. The imports include lithium, cobalt, nickel, and graphite. Carney said the new alliance is not a marketing exercise. He added that the name does not matter. The summit is testing his vision for a new global order that is less dependent on the US-led system.