Since the 1990s (really, the 1970s), Canadian researchers like Yoshua Bengio, Geoffrey Hinton, and Richard Sutton have pioneered the field of artificial intelligence. But foreign AI companies—mostly US giants—have absorbed much of the private capital, customers, and revenue from this burgeoning technology. In mid-2026, it might feel long overdue that Canada finally has a national strategy to capitalize on (and govern) AI.
As BetaKit reported this week, AI for All lays out concrete spending commitments that together paint a clear picture of what Ottawa hopes to achieve: widespread commercialization and adoption of sovereign AI that will work alongside humans rather than replace them; bolstered by research into open-source tech built with allied nations. The feds plan to do that by creating a $500-million growth capital fund, taking equity stakes in companies, and creating incentives to compel investors to reinvest gains into startups.
The strategy notes one sizable hurdle standing in the way: an enormous lack of AI literacy and trust from the Canadian public. Less than a quarter of Canadians have training on how to use AI systems, and “half regard AI as a threat to humanity.” These numbers are likely contributing to Canada’s lagging AI adoption (see Georgian’s report later in this newsletter).
Ottawa promises partial fixes in the form of education funding and privacy legislation. That legislation has yet to be tabled or outlined, and what it might look like isn’t the only outstanding question regarding how this strategy will lead to AI for all. Those details are important. As AI strategy task force member Taylor Owen noted, “Folding these protections into the strategy itself in a substantive way would [have] sent a strong signal to Canadians that their safety and their rights are not adjacent to Canada’s AI ambitions, but a core part of them.”
Canada’s early AI pioneers have repeatedly stated that development of the tech must be done with strong public buy-in. The nation finally has a broad and ambitious AI strategy. But the tactics through which it is enacted will determine whether Ottawa can deliver the promised outcomes.
Sarah Rieger
Managing Editor
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Canadian government gains access to Anthropic’s powerful Mythos model
Canada is now on the exclusive list of countries and organizations with access to Anthropic’s Mythos AI model, which the US company has claimed is too powerful to release to the wider public.
AI and digital innovation minister Evan Solomon called it “an important step” for Canada to strengthen cyber protections.
Robinhood officially enters Canada, following WonderFi acquisition
It’s been more than a year since US trading platform Robinhood signed a $250-million deal to buy Canadian startup WonderFi. With the acquisition officially closed, the Robinhood app (with WonderFi’s crypto tools under the larger brand) is now available to Canadians. WonderFi president and CEO Dean Skurka has also exited the company.
Cohere says it is not working with Palantir
The Toronto AI company told BetaKit it’s not working with controversial US data firm Palantir, following reports of a rumoured partnership.
A spokesperson did confirm that, several years ago, Cohere participated in a “short-term pilot arranged at the request of a prospective customer.”
Opinion: Canada’s Bill C-22 creates a blueprint for surveillance
The government says the proposed legislation is meant to give law enforcement tools to investigate crimes and threats within digital systems. Windscribe CEO Yegor Sak argues that, even with amendments, it comes at the cost of online privacy for every Canadian internet user.
Q&A: Why cleantech might not be as clean as it seems
BetaKit caught up with Vince Beiser, an award-winning journalist and author of Power Metal: The Race for the Resources That Will Shape the Future, for a candid talk about cleaner ways to mine critical minerals and why “cleantech” could be a misnomer.
Shopify ups share buyback program as activist investors question AI policies
The e-commerce giant increased the $2-billion USD share repurchase program it launched in February by another $3 billion this week. This comes weeks before its AGM on June 16, where Shopify faces an activist shareholder proposal demanding the company adopt responsible AI policies.
ICYMI at Toronto Tech Week
- Finance leaders debated whether stablecoins would leapfrog real-time rail payments at the Canadian Finance Summit.
- Tech workers, academics, and founders explored the future of working with AI—and who might benefit most—at an event hosted by Re-Work.
- Georgian released a study showing that Canadian B2B software firms are falling behind their peers in adopting agentic AI.
Linux Association of Canada launches national open-source library
The newly founded Saskatoon-based association is accepting entries for open-source projects that were founded or mainly developed in Canada. Organizers say the goal is to bolster access to sovereign software that’s free to use and modify.
FEATURED STORIES FROM OUR PARTNERS
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Toronto Pearson International Airport’s multi-billion-dollar LIFT initiative is transforming Canada’s busiest airport into a proving ground for homegrown tech.
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General Motors’ engineering footprint in Ontario has positioned Canada at the forefront of the global automotive landscape as its Super Cruise hands-free technology becomes the primary driver of advanced driver-assistance systems.
SR&ED season is here. How to claim the hours you actually worked
Chrono Innovation’s automated data platform is leading a structural shift in process documentation to prepare Canadian businesses for a successful SR&ED tax claim season.
Why scaling requires more than speed
IDEA Mississauga’s Step Up Program is helping early-stage founders navigate the growth gap by building the foundational systems and strategies required to successfully scale.
🇨🇦 Weekly Canadian Deals, Dollars & More
VAN – Version One Ventures raises $108M USD across two new funds
VAN – Clio expands into the US with NYC headquarters
CGY – SensorUp closes growth financing led by Pender Ventures
KW – Scispot secures $8M USD Series A for life sciences research AI
TOR – Mecka AI announces $60M USD to power physical AI
MTL – Inovia promotes Mia Morisset to partner on growth team
MTL – Pricepoint nabs $6.6M CAD for AI hospitality platform
MTL – BDC extends Isabelle Hudon’s mandate as CEO through 2030
MTL – Montréal research hospital opens healthtech innovation hub
MTL – Deep Sky inks carbon capture agreement with TD Bank
Physical AI and economic nationalism at BetaKit Most Ambitious: Town Hall
“You guys have done what you’ve done with the wind in your face. Imagine if you had the wind at your back. Wow.”
Couldn’t attend BetaKit Most Ambitious: Town Hall? Don’t worry. Enjoy Waabi CEO Raquel Urtasun explaining how the future of transportation will be driven by physical AI before sitting down to discuss Canada’s AI ecosystem with U of T president Melanie Woodin. Then we have former RIM co-CEO and CCI chair Jim Balsillie talking about the need for economic statecraft to drive Canadian prosperity before sitting down with BetaKit editor-in-chief Douglas Soltys to discuss the strategies entrepreneurs should consider to get the wind at their back.
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Feature image courtesy Evan Solomon via X.