Canada to Invest Up to C$1.6 Billion in Cohere as AI Firm Opens Series E Targeting C$7 Billion

The Government of Canada will make an equity investment of up to C$1.6 billion in Cohere, the Toronto based artificial intelligence company, the prime minister's office announced on Thursday, Oct. 29, 2026, in Montreal. The investment will be made in stages, as a commercial investment alongside private investors that include NVIDIA, Bell and Schwarz Group.

On the same day, Cohere announced the initial close of its Series E funding round, which is targeting up to C$7 billion. The company said the round would represent a valuation of C$35.7 billion. Reuters put the valuation at about C$36 billion. Cohere has completed only an initial close, and it did not say how much has been committed so far or when it expects the round to close. The company has not raised the full C$7 billion yet.

The largest private raise claimed in Canadian history

Cohere described the Series E as the largest private financing round ever undertaken by a Canadian technology company. Its co-founder and chief executive, Aidan Gomez, said: "Today we are announcing the initial close of our Series E, a record-setting round that marks the largest private capital raise in Canadian history."

The companies of Schwarz Group are the lead investor. Bell Ventures, Bullhound Capital and the Government of Canada joined as new investors, and Inovia Capital, NVIDIA and Prosperity7 Ventures returned as investors, according to the company's announcement.

Schwarz, the German group that owns the Lidl and Kaufland retail chains, pledged 500 million euros in Apr 2026 to lead the round, as part of Cohere's merger with the German AI developer Aleph Alpha. Schwarz owned more than 20 percent of Aleph Alpha. Schwarz Digits chief executive Christian Muller said the group plans to run Cohere's models on its STACKIT cloud, and Schwarz has spent 16 billion euros on new data centres in Germany, Reuters reported.

What Canada gets in return

As part of Canada's investment, Cohere will create at least 1,000 new high paying Canadian technical jobs by 2030, commit at least C$1.7 billion to additional computing infrastructure in Canada by 2030, and maintain its Canadian incorporation and its Canadian headquarters, the prime minister's office said.

Prime Minister Mark Carney said: "Canada's investment in Cohere is an investment in choice, in security, and in our ability to live our lives as we choose. Today, true sovereignty depends on our ability to build, adopt, and govern AI on our own terms."

Evan Solomon, the minister of artificial intelligence and digital innovation, said: "It is not enough for great companies to start in Canada. We want them to grow here, build here, and create good jobs here."

Cohere, founded in Toronto, builds secure AI systems for businesses and governments, giving organisations greater control over where sensitive data is stored, how it is used and who can access it. Its recent merger with Aleph Alpha brings together Canadian and German AI expertise.

The company said the new money will fund model development, products for regulated industries and computing infrastructure. Its annual recurring revenue grew 165 percent year over year as of the third quarter, and its customer count has grown to 300, Reuters reported.