The feds’ rebooted relationship with Canadian tech just hit ‘it’s complicated’ status.
The newly formed Liberal government has been on a roll repairing a relationship fundamentally fractured by last year’s capital gains tax inclusion rate increase. Mark Carney deep-sixed that idea while he was still Prime Minister-designate; since then, the feds have scored PR wins by committing to make AI darling Cohere a “Canadian champion” and working with Shopify to reform the oft-maligned SR&ED tax credit. The vibes have been (mostly) strong.
This week revealed that old habits die hard, as Finnish firm Nokia broke ground on its revamped Ottawa campus, a $340 million project for which the feds are committing $40 million. Minister of Industry Mélanie Joly called it a sign that “Canada is leading the global tech race.” Shopify CEO Tobi Lütke saw it another way, calling the funding a “bribe” and foreign direct investment projects “toxic” for tech.
The federal FDI commitment is a holdover from the previous Liberal government, which was quite fond of such incentives. But newly minted AI Minister Evan Solomon defended it, telling BetaKit’s Josh Scott it was a “job multiplier.”
Time will tell if the jobs, in fact, multiply, but for now they are being added at a hefty premium. This is doubtlessly worrisome for those who hoped the Liberals had abandoned old approaches alongside their old leader.
It is not the only worry. Nokia’s Ottawa campus will focus partially on AI R&D—tech developed by Canadians, but not owned by them. According to Solomon, who recently called digital sovereignty “the most pressing policy and democratic issue of our time,” it’s an example of “what sovereign AI … looks like in practice.”
You can read Alex Riehl’s excellent coverage for the response from the sovereignty crowd. I’m left wondering if the federal government’s relationship with Canadian tech can truly change if its innovation policies haven’t.
Douglas Soltys
Editor-in-chief
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How Dozr, a promising construction tech firm, went from building boom to receivership to asset sale
After spending over a decade building and scaling an online marketplace for heavy equipment rentals, Dozr’s assets were unceremoniously sold last month to help a stiffed lender recoup some of its capital. While it’s now in new Canadian hands, its future remains unclear.
Shopify says recent layoffs “removed layers that created complexity”
Shopify has made more layoffs across a number of roles in recent weeks, following a C-suite shakeup and firings that were reportedly related to issues of internal sales fraud last summer.
Faire co-founder: company has the metrics to go public, but isn’t rushing to IPO
Marcelo Cortes argues that his online wholesale marketplace business has the numbers of “a very good public company,” but he won’t say when it might make the leap.
Instead, Faire has kicked off an employee share sale as part of a tender offer at a $5.2-billion valuation, a far cry from the $12.4-billion it was once valued at in 2021.
Amid global DEI backlash, Canadian VC sees more women and visible minorities in leadership roles
The Business Development Bank of Canada’s 2025 DEI & ESG Industry Report surveyed the dozens of firms that BDC invests in and found an uptick in women in senior firm leadership and a downturn in climate pledges.
Crypto advocates want blockchain tech added to Canadian AI minister’s portfolio
Coinbase Canada CEO Lucas Matheson believes that Evan Solomon’s portfolio should include the technology underlying cryptocurrencies. AI and the blockchain are related not just through their potential to transform existing industries, but by Canada’s opportunity to assert its digital sovereignty, advocates like Matheson say.
Another fund partner leaves BDC
The shakeups at the Business Development Bank of Canada continue as Guillaume Mercier, a partner in BDC Capital’s Industrial Innovation Fund, announced his departure.
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The BetaKit Podcast — How OpenText went all-in on AI
“The technology is there, and everyone loves cool technology, but it doesn’t need to be a party trick. It needs to be something that’s driving a meaningful business outcome, so pick your challenging problems.”
OpenText EVP Shannon Bell explains how she rolled out AI systematically at one of Canada’s largest tech companies. As OpenText embraces human and digital resource management, has it found a return on its investment? Let’s dig in. Recorded live on the BetaKit Keynote Stage at SAAS NORTH.
Take The BetaKit Quiz – Alberta’s AI-generated legislation, Tobi’s take on Nokia, and Nvidia’s name-drop
Think you’re on top of Canadian tech and innovation news? Time to prove it. Test your knowledge of Canadian tech news with The BetaKit Quiz for November 28, 2025.
Canada just made the most significant SR&ED changes in years.
Join us December 11 at 12pm ET for a discussion breaking down exactly what changed, and what it means for innovative businesses across Canada.
Featured speakers:
Daniel Perry – Council of Canadian Innovators (policy and industry perspective)
Carlos Coelho – Boast (practical claiming strategies and optimization)
Hosted by BetaKit CEO Siri Agrell
Event details:
📅 December 11, 2025
🕐 12:00 PM ET
⏱️ 60 minutes + live Q&A
💻 Virtual (link provided upon registration)
You’ll learn:
✓ The details of what Budget 2025 delivered
✓ What activities and expenditures now qualify
✓ Documentation and claiming best practices
✓ Industry-specific considerations for tech, manufacturing, and cleantech
✓ Strategic guidance for newly eligible public companies
Feature image courtesy Alex Riehl for BetaKit.