The AI minister says feds could tie AI and digital technology funding to rules for purchasing Canadian goods.
Canadian Artificial Intelligence Minister Evan Solomon stopped by the OneEleven Innovation Center in Toronto yesterday to share more details and an updated timeline for the Government of Canada's AI and Buy Canadian strategies, which are expected to launch in 2026.
Feds have provided nearly $926 million over five years. Budget 2025 to finance the development of large-scale sovereign government artificial intelligence infrastructure. However, $800 million of that amount will come from the previous Liberal government. Sovereign AI Computing Strategy.
“The government has the opportunity to become a force for nation building by becoming our best customer.”
Artificial Intelligence Minister Evan Solomon
Asked by BetaKit why there was little new funding for artificial intelligence in the latest budget amid the media uproar following his remarks, Solomon said the Canadian government wants to “fix some key things” first, including allowing the construction of local data centers to meet domestic computing needs.
Once that happens, Solomon said the feds will reevaluate what comes next. “There will be other steps along the way,” he added, noting that he also expects Canada's new defense industrial strategy to play a role in the country's “artificial intelligence infrastructure story.”
The government intends to use the budget to invest the Canada Infrastructure Bank (CIB) in artificial intelligence infrastructure projects. It also gives Solomon the authority to engage with industry to identify promising AI infrastructure initiatives and enter into memorandums of understanding (MOUs) with them.
Solomon told media that federal authorities are also considering forcing companies to buy from Canadian suppliers when they receive government funding for artificial intelligence and digital technologies.
Solomon gave the signal that the feds are interested in signing broader MOUs like the one hit with Cohereto accelerate the procurement process with other qualified Canadian technology firms of strategic importance.
Solomon said that Artificial Intelligence Task Force The federal government, meeting this fall to help implement a revamped artificial intelligence strategy, completed a 30-day sprint and presented recommendations that are now being reviewed.
In total, Solomon said the government received 28 applications from members, as well as 11,000 from the public, a Canadian record for innovation, science and economic development. Federal authorities are using AI to sort through publicly available data.
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While the AI minister did not give a firm timeline for when the government might publicly share these recommendations, Solomon said he would meet with members of the task force over the next two weeks to discuss their proposals and consolidate them.
Solomon awaits the launch of a government program updated AI strategy which will take place next year, given the need to adopt these recommendations.
Solomon also acknowledged that federal officials are looking to incentivize the construction of domestic data centers not only through the CIB, but also through potential financial support or computing resource purchase agreements.
Solomon said the government is “open to a lot of different structures” and there are many agreements with conditions under consideration. It has a mandate to negotiate, but has not yet signed anything.
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“We want to make sure that in the future we build our economy with Canadian products and Canadian companies, and for that to happen, the government will have to play a catalytic role in some places,” Solomon said.
But the AI minister said he expects the private sector to “have a lot to figure out” on its own when it comes to AI infrastructure, adding: “We're not here to support everyone.”
In procurement, the budget has reserved nearly $186 million in new funding over five years for implementation Buy a Canadian policy this ensures that more federal spending goes toward purchasing domestic goods and services.
Solomon and federal officials said the policy will begin taking effect this month and will initially apply to defense and construction before being fully implemented by spring 2026.
“Through federal procurement, the government has the opportunity to become a force for nation building by becoming our best customer,” Solomon said on stage.
Image courtesy of ISED. Photo by Peter Wall.
