Federal budget proposes $1 billion go towards boosting Canadian AI

On Tuesday, Prime Minister Mark Carney held his first budget meeting, where he proposed spending more than $1 billion over the next five years to build the country's artificial intelligence (AI) and quantum computing ecosystems, while introducing AI technologies into more federal government operations.

In Budget 2025, the federal government has reportedly proposed spending $925.6 million over the next five years to support a large-scale “sovereign” public attack on artificial intelligence. CBC News. The $800 million investment will come from funds set aside in the 2024 budget, which announced the total investment amount. $2 billion for artificial intelligence development in Canada capacity and help build public supercomputing infrastructure. The budget reallocates money to increase the availability of AI computing and support access to sovereign AI computing power for public and private research” and ensures that Canada can be “globally competitive in a secure and sovereign environment.”

Regarding the quantum computing ecosystem, the federal government is proposing to provide $334.3 million over the next five years to various government departments and agencies to promote quantum technology companies in Canada. The money will also be used to implement these technologies in defense-related applications and industries. The money would come as part of a defense industrial strategy, although Carney's government has yet to unveil that strategy. In fact, according to the company, this strategy is not expected to appear until the end of this year at the earliest. CBC News.

The budget also outlines smaller announced AI initiatives, including AI Minister Evan Solomon's work with industry to identify AI infrastructure projects for the future. The Budget also explains how the Federal Government intends to integrate artificial intelligence technology into its operations to help improve productivity and service quality.

Source: CBC News