Canada Boosts AI Sector with Major Funding for Scale AI

The Government of Canada is making a significant push to accelerate the country's leadership in artificial intelligence, throwing its weight behind a major funding initiative by Scale AI, the nation's AI global innovation cluster. The move is designed to fast-track the commercialization of Canadian AI solutions and enhance national competitiveness amid a rapidly evolving global landscape.


At the heart of the initiative is a $30 million funding envelope made available by Scale AI to support high-impact projects that can deliver measurable value to Canada's economy. While the fund was opened in April, a high-profile government event is scheduled for tomorrow in Montreal, where the Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation, will highlight the federal commitment to these new projects, signaling a concerted effort to drive AI adoption.


The program aims to de-risk innovation for Canadian companies by covering up to 40% of the costs for eligible projects, with a strong emphasis on initiatives that can be completed this year. This strategic injection of capital is intended to empower businesses to integrate AI to improve productivity, particularly within Canada's critical supply chains.

“Amid rising geopolitical volatility and persistent economic uncertainty, it is imperative that we act collectively to safeguard the competitiveness of Canada's AI ecosystem,” said Julien Billot, CEO of Scale AI, when the fund was announced. “This moment calls for swift and decisive action. Our ambition is clear: to invest in Canadian talent and technology to create lasting, meaningful impact.”

Scale AI is one of five national Global Innovation Clusters established by the federal government. The program has been a cornerstone of Canada's industrial strategy, pairing public funds with private investment to fuel growth in key sectors. According to a 2024 analysis by Ernst & Young, the cluster program is already a proven job creator—estimated to have supported nearly 35,000 full-time positions—and is forecasted to add up to $16 billion to Canada's GDP by 2035.

This latest push ensures that intellectual property and economic benefits generated from these advanced projects remain in Canada, solidifying the country's position not just as a hub for AI research, but as a leader in its practical and profitable application.