Canada to take equity stake in AI firm - Semafor

Canada is taking an equity stake of up to $1.1 billion in a Toronto-based AI startup, as Washington’s allies intensify efforts to reduce their technological reliance on the US.

Ottawa’s push mirrors that of the UK, whose finance minister this week pledged to pursue “a distinctively British approach to AI,” and announced $80 million for a sovereign AI fund to boost domestic firms in Europe’s largest tech sector.

Downing Street is also planning to inject another $160 million into a government lab testing the world’s frontier AI models — roughly 10 times the annual budget of its US counterpart, despite most American voters polled in swing states expressing strong support for government safety testing.

Correction: An earlier version of this story misstated the amount the UK announced for a sovereign AI fund.