The federal government has introduced a new initiative to strengthen artificial intelligence (AI) development by providing small and medium-sized enterprises (SMEs) with affordable access to computing power.
François-Philippe Champagne, Minister of Innovation, Science and Industry, announced the AI Compute Access Fund, which will allocate up to $300 million to help Canadian businesses create AI-driven products and solutions.
The fund is part of the $2 billion Canadian Sovereign AI Compute Strategy, a broader effort to enhance Canada's AI capabilities. By improving access to high-performance computing, the initiative seeks to remove barriers faced by SMEs developing AI technologies, particularly in health sciences, energy, and advanced manufacturing sectors.
Compute, which includes processing power, chips, and data centres, plays a key role in AI development. The newly launched fund aims to improve Canadian innovators' access to computational resources, supporting the complex calculations required for AI systems. Minister Champagne emphasized the importance of this investment, stating that while AI can potentially transform multiple industries, the cost of compute remains a significant challenge for smaller enterprises. He highlighted that this initiative aims to create a more level playing field, allowing SMEs to compete with larger corporations in AI development.
The AI Compute Access Fund is one component of the government's larger AI strategy, which includes several additional investments. The government plans to invest $700 million to support AI data centre projects across industry, academia, and the private sector. Another $705 million will fund a new AI supercomputing system through the AI Sovereign Compute Infrastructure Program, significantly expanding the country's compute power. Additionally, $200 million will be allocated to enhance existing public computing infrastructure to address immediate needs.
Canada's broader AI strategy also includes initiatives focused on responsible AI development, such as the Canadian Artificial Intelligence Safety Institute and the Voluntary Code of Conduct on AI Development.
In 2022–23, Canada had more than 140,000 AI professionals, a 29 percent increase from the previous year. The country also has 10 percent of the world's top-tier AI researchers, the second-highest concentration worldwide. The AI sector continues to drive economic growth, attracting $8.6 billion in venture capital investments in 2022, which accounted for nearly 30 percent of all venture capital activity in Canada. The number of AI patents filed by Canadian inventors increased by 57 percent in 2022–23, nearly three times the G7 average.
The AI Compute Access Fund is expected to accelerate AI development across Canada, enabling SMEs to scale their innovations and compete in the global market. By securing access to cutting-edge compute infrastructure, the government aims to attract international AI investment, develop and retain top talent, and support Canadian businesses and researchers in advancing AI technologies.
This announcement follows the recent call for statements of interest for the AI Sovereign Compute Infrastructure Program, which will establish a Canadian-owned and operated high-performance supercomputing system to anchor the nation's AI infrastructure.