Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Entrepreneurs, Start-ups, Small Businesses
Five Ways Countries Are Responding to Trump’s Tariffs
Tariffs | April 3, 2025
Image: Freepik/rawpixel.com
How Countries Are Responding to Trump’s Tariffs And What Happens Next
On April 2, U.S. President Donald Trump introduced a massive set of new import tariffs. Starting April 5, a universal 10% tariff will apply to all imports coming into the U.S. Additionally, certain countries that the administration considers to have unfair trade practices with the U.S. will face even higher tariffs, between 20% - 49%.
See: Trump’s April 2025 Tariffs and What They Mean for Canada
Canada and Mexico were spared this tariff round but they’re still dealing with a separate 25% tariff that was put in place back in March, which were linked to concerns about fentanyl and border issues. In response, Canada has now fired back with its own 25% tariff on U.S. vehicles that don’t meet USMCA rules (applies to $35.6 billion CAD of imports). This is no longer political jockeying.
So what are other countries doing in response? And how might this play out?
Five Ways Countries Are Responding
Several countries have already responded to the wide sweeping tariffs albeit in noticeably different ways (and strategies):
1. Outright rejection - China (54% tariffs) strongly condemned the move, demanding that they 'immediately cancel' the tariffs. Beijing warned of major disruption to global supply chains and didn't rule out retaliation. April 4 update: China responds to Trump's trade war, China's Finance Minster, "For all imported goods originating from the US, an additional tariff of 34% on top of the current applicable tariff rate will be imposed."China will also escalate restrictions on exporting 'rare earth' minerals to the U.S. Markets plunge further.
2. Warning with possible retaliation - The European Union (20% tariffs) said it would respond in a "legitimate, proportionate and decisive" way.
3. Diplomatic concern, open to talks - Japan (24%), India (26%), Taiwan (32%), and Thailand (36%) expressed concern but stressed willingness to work with the U.S. to find solutions. These responders look to want to preserve economic ties.
See: Digital Export Trends and Global Trade Fintech Opportunities
4. Disappointed but remaining calm - The UK (10%) and Australia (10%) criticized the tariffs as unfriendly and unhelpful but said they would not retaliate. Both are preparing for possible economic fallout while exploring alternative trade options.
5. Direct countermeasures or defensive policies - Canada (sector specific 10-25%) and South Korea (25%) have already taken concrete steps. Canada introduced a matching 25% auto tariff and has announced support for affected sectors. South Korea rolled out emergency support measures for affected industries.
The varying responses highlight how different countries are balancing their economic exposure to the U.S., combining political pressure and long term trade strategies.
How This Could Play Out
We anticipate short term volatility, retaliation, legal/political challenges, shifting supply chains and inflationary pressures:
- Stock markets have already negatively responded to the news, and businesses are scrambling to assess how the tariffs will hit their supply chains and costs, especially key sectors likely to be disrupted such as autos, tech, agriculture, and retail.
- With Canada already retaliating and the EU hinting the same, we may see a global trade war spiral deeper, inflation and recessionary pressures.
- Trump used emergency powers under the IEEPA to enact these tariffs without Congress. That may face court challenges, including push back from within their own party. Meanwhile, allies are lobbying behind the scenes for exemptions.
- Countries may move quickly to find new trade partners and diversify supply chains. Canada is already accelerating trade talks with Europe and Asia and rolling out support for local exporters.
See: Resources for Canadian Resiliency and Competitiveness
- U.S. businesses and consumers may absorb the tariff costs, not foreign exporters. This could push up prices on many goods (and make it harder for central banks to set interest rates). Canadian sectors like auto parts, energy, and food could feel indirect pressure from global realignments.
Conclusion
The April 2 tariffs are just the start. Countries are reacting in their own ways, and the situation is still developing. Canadian fintechs should prepare for uncertainty, but also for opportunity.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Trump’s April 2025 Tariffs and What They Mean for Canada
Tariffs | April 3, 2025
Image: Freepik AI
Trump's Tariffs Shake Global Trade — Canada Exempt But Still at Risk
On April 2 2025, President Trump announced a massive shift in U.S. trade policy with a litany of universal and country specific tariffs that will affect global trade flows. He declared a 'national emergency' over the U.S. trade deficit, and said that it was a threat to America's national security. The U.S. will now apply tariffs (essentially a tax) on all imports entering the country. While Canada and Mexico were exempt from this round of April 2 'liberation day tariffs', Prime Minister Mark Carney vowed to push back against the existing tariffs currently applied to Canada.
See: What Fintechs Need to Know About New U.S. Tariffs
Uncertainty of global trade has hit global stock markets hard, with broad indexes declining 4%, as investors flee to safe assets. Investors are expecting higher input costs, slower global trade growth and escalating retaliation from affected countries.
President Trump said:
“Our country has been looted by nations near and far. Now it’s our turn to prosper... and use trillions to pay down our debt.”
What Was Announced
- A 10% universal tariff on ALL imports to take effect April 5, 2025.
- Countries deemed to have 'unfair' trade practices with the U.S. will have country specific higher tariffs that will take effect April 9, 2025.
- The tariff rates were calculated based on formal existing tariffs plus “non-tariff barriers” like regulatory restrictions, and then halved.
- A separate executive order on April 2 was signed that removes the “de minimis” exemption for shipments under $800 from China and Taiwan to take effect May 2, 2025. This directly affects platforms like SHEIN and Temu.
- Notably some countries like Russia, North Korea, Cuba and Belarus are exempt from this round of tariffs too, with the administration explaining that they are already facing high tariffs and imposed sanctions which effectively eliminates meaningful trade with those countries.
See this CTV news post for the full list of tariffs by country
| Country | Tariff Rate |
| Cambodia | 49% |
| Vietnam | 46% |
| Sri Lanka | 44% |
| Bangladesh | 37% |
| China | 34%+20% |
| Taiwan | 32% |
| Indonesia | 32% |
| Switzerland | 31% |
| South Africa | 30% |
| Pakistan | 29% |
| India | 26% |
| South Korea | 25% |
| Japan | 24% |
| European Union | 20% |
| Thailand | 36% |
| United Kingdom | 10% |
Exemptions and Overlaps
Canada and Mexico are currently exempt from the new April 2 country-specific and universal tariffs, ONLY if goods qualify under the United States-Mexico-Canada Agreement (USMCA) rules of origin.
However, Canada already faces a separate 25% tariff that was imposed in March 2025 on a broad set of goods and linked to fentanyl enforcement and immigration/border disputes. The 25% tariffs have been partially suspended but not entirely repealed - see White House fact sheet.
Sector-specific tariffs on Canada that were previously announced, such as those on steel, aluminum, autos (starting April 4), copper, and semiconductors, are not cumulative with the April 2 tariffs.
🇨🇦 Canada’s Response “We Will Fight Back”
While some products are still protected under USMCA, other key Canadian exports, such as raw materials, energy products, and manufactured goods — remain vulnerable. PM Mark Carney made it clear that Canada will retaliate "with purpose and force".
Ottawa's game plan includes preparing a set of counter-tariffs, providing emergency support for exporters, accelerate trade talks with Asia-Pacific and the EU, and incentivize domestic production and supply chain innovation (remove interprovincial trade barriers).
Update: Canada Matches U.S. Auto Tariff with 25% Countermeasure - PM Mark Carney announced today that Canada will implement a reciprocal 25% tariff on U.S. vehicles that do not comply with the Canada-United States-Mexico Agreement (CUSMA) to protect Canada's auto sector and its workforce. The new levies will apply to $35.6 billion CAD of imports.
What It Means for Canadian Fintech and SMEs
Broad sweeping tariffs will ignite a trade war and is a risk event for Canadian businesses. Small to medium sized businesses (SMEs) will find it difficult to absorb cost hikes and delays in exporting to America.
See: Canada and Trump Risk Index What Fintechs Need to Know
Fintech platforms in cross-border payments, lending, and logistics can offer supply chain risk and trade compliance tools. E-commerce platforms could see many global vendors move away from U.S-centric trade models.
Looking Ahead
Although Canada avoided the pain of the April 2 tariffs, the risks aren't gone. With a global trade war not afoot, supply chains will shift and Canada will feel the effects either directly or indirectly. Carney's call for a 'new economy' may go beyond just a response and become Canada's national strategy going forward. Brace for volatility and opportunity at the same time.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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UK FCA Plans Full Crypto Licensing Regime by 2026
UK Crypto Regulation | April 2, 2025
Image: FCA Crypto Roadmap (Financial Conduct Authority)
FCA Confirms UK Crypto Registration to Begin in 2026 Following Legislation this Year
In a recent interview with CoinDesk, FCA Director Matthew Long said that the UK intends to officially start licensing crypto firms under a comprehensive framework in 2026. It's contingent on consultations and final rule-making this year in 2025, and then being approved by Parliament.
Current Registration Landscape
As of April 2 2025, the FCA has registered 51 cryptoasset firms under a temporary anti-money laundering (AML) framework to ensure basic compliance until a more comprehensive framework is developed. Bookmark the above link if interested in tracking and verifying the registration status of crypto firms in the UK. The resource page is managed and kept up-to-date by the FCA. Crypto businesses were given ample time to register for the temporary regime including an extension.
Transitioning to New Comprehensive Framework
The new UK crypto licensing rules will go beyond just anti-money laundering checks. They’re expected to cover areas like how crypto is stored (custody), how tokens are listed on platforms, how market abuse is prevented, and how consumers are protected. This plan builds on two key FCA documents published in late 2024.
First in November 2024, the FCA published a Crypto Policy Roadmap outlining the FCA’s policy direction and timeline for implementing its comprehensive crypto framework. Then, there's a Discussion Paper DP24/4 (December 2024) that evaluated options for regulating cryptoassets with a focus on market abuse rules and establishing disclosure standards. Together, along with numerous updates to industry, its clear that the FCA is aiming to create transparent and fair crypto regs that support innovation while keeping the market safe and trustworthy.
The National Crowdfunding & Fintech Association (NCFA) has tracked and reported the FCA's progress towards crypto regulation by 2026 including initiatives like stablecoin rules and the Digital Securities Sandbox. Learn more: "UK’s Regulatory Crypto Roadmap from Sandbox to Mainstream
Implications
By providing clear regulatory guidelines, the FCA aims to enhance consumer confidence and attract legitimate crypto businesses.
See: UK vs. Canada: A Tale of Two Different Crypto Consumers
It aligns the UK with global efforts to standardize crypto regulation, and continues to position the UK competitively among jurisdictions like the European Union and the United States.
Conclusion
Given that the UK is entering a new phase of crypto regulation, with full licensing expected to begin in 2026, crypto firms looking to operate in the UK should stay engaged with the FCA to prepare for the new rules, and implement the required compliance and governance procedures.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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National Plan to Unlock Growth and Innovation
Royal Commission | March 28, 2025
Image: Freepik
Canada Needs a Bold National Plan to Support Innovation, Economic Growth, and Attract Investment
A group of Canadian policy experts from across the country at Policy Options are calling for a royal commission to secure Canada's future — and they're probably right if the first outputs and key decisions can be delivered on a very quick timeline (i.e. less than 6 months). They warn that Canada’s economic model is outdated, our policies are stuck in the 20th century, and our global competitiveness is slipping (let's not forget our continued productivity decline and inability to track significant investment).
See: The Crisis Canada and Fintech Can’t Afford to Waste
Canada's economy is underperforming. The country is slow to adopt modern financial infrastructure. Interprovincial trade barriers are costing billions. Canada lacks a coordinated innovation and startup scale-up strategy.
They argue that only a national, non-partisan effort like a royal commission can bring Canadians together to build a future-ready plan. For fintech, innovation, and entrepreneurship. If Canada is serious about attracting investment, scaling startups, and competing globally, it needs a national strategy that streamlines regulation, opens interprovincial trade, unlocks innovation and capital, boosts economic growth and attracts investment, and a royal commission could make that happen. Now is the time to act.
Royal commissions have worked before. The Macdonald Commission (1982–85) laid the groundwork for free trade and modern economic policy. A new commission could once again unite governments, entrepreneurs, and civil society to chart Canada's strategy in an uncertain future, but only if it moves quickly.
Why It Matters
Canada has amazing human capital - talent, ideas, and potential, but we need a national strategy that makes it easier for entrepreneurs to launch, raise capital, scale technologies, and compete globally, which would drive significant economic growth.
See: Canada’s AI Competition Report Faces Big Tech Challenges
A royal commission could align innovation, regulation, trade, and investment around a shared economic vision. Done right, it would empower the next generation of Canadian companies and secure long term prosperity, not by protecting incumbents but by empowering performance.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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GameStop Joins Growing List of Bitcoin Treasury Holders
Bitcoin Reserve | March 26, 2025
Image: Freepik
GameStop Stock Jumps on Bitcoin Reserve Strategy, Shares Surge 15%
Adding bitcoin to your company's treasury is a growing strategy. This time, GameStop is back in the spotlight but not because of Reddit influencers but because of Bitcoin. The video game retailer just announced that the GameStop's board unanimously approved an update to their investment policy to add Bitcoin as a treasury reserve asset. So now there's a green light to use part of its cash or future capital to acquire Bitcoin without setting a cap on how much.
The news sent GameStop shares soaring almost 15% to $29.10 in after hours trading on March 26 2025 and came alongside their fourth quarter earnings which showed a surprising profit despite falling sales with earnings per share at $0.30, crushing analyst expectations of just $0.08.
See: Trump Signs Order for Bitcoin Reserve, Crypto Stockpile
The decision is part of a broader effort to appeal to a new generation of investors and push for a more aggressive company and bolder financial strategy. It's in line with actions taken by other corporations, such as MicroStrategy which have integrated Bitcoin into their financial strategies. The move also follows the recent executive order by President Trump to establish a strategic Bitcoin reserve.
Canadian Companies Embracing Bitcoin
Several Canadian public companies have also adopted Bitcoin as part of their treasury strategies.
Goodfood Market Corp. (TSX: FOOD) In January 2025, Goodfood became one of Canada’s first consumer-facing companies to adopt Bitcoin as part of its treasury. The company made an initial $1 million CAD investment via a spot Bitcoin ETF.
Neptune Digital Assets Corp. (TSXV: DASH) Between January 26 and February 3, 2025, Neptune acquired 20 more BTC for $2 million USD. This brought their total Bitcoin holdings to 376 BTC.
Bitcoin Well Inc. (TSXV: BTCW) In December 2024, Bitcoin Well began a Bitcoin treasury strategy by adding 7.5 BTC and announced plans to raise $2 million through a convertible debenture to expand their holdings.
DeFi Technologies Inc. (NEO: DEFI) In 2024, DeFi Technologies officially made Bitcoin its primary treasury reserve asset and later diversified into Solana and Core DAO staking.
Matador Technologies Inc. (TSXV: MATA) Matador who is focused on tokenizing real world assets (RWA) expanded its Bitcoin treasury in late 2024 by acquiring an additional 3.46 BTC.
LQwD FinTech Corp. (TSXV: LQWD) As of early 2025, LQwD held 136 Bitcoins. Their most recent purchase added 5 BTC to their long-term reserve strategy tied to the Lightning Network.
Kontrol Technologies Corp. (CSE: KNR) In November 2024, Kontrol announced it would begin holding Bitcoin directly as part of a capital preservation plan, starting with a $1 million CAD purchase.
These above companies at the front line of a growing trend among Canadian public firms (there are many private companies, too!) to integrate Bitcoin into their financial strategies, looking to diversify assets and hedge against inflation.
Why It Matters
Bitcoin's interest continues to grow and is starting to be treated as a serious asset by more and more companies who are rethinking how they handle money amidst economic uncertainties and inflation (potential stagflation), and anyone in finance, policy and tech should be watching closely.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Ottawa Unleashes Policy Blitz to Support Economy
Economy | March 24, 2025
Image: Freepik/rawpixel.com
5 Policy Updates Announced by the Canadian Government to Support the Economy
Ottawa has made a flurry of policy announcements in response to growing economic pressure and global trade tensions including a reversal on the planned capital gains tax, a snap federal election, and commitment to aligning with Europe on carbon pricing to support trade, all in just a few days.
See: Trade War Hits! Markets Roil, What Fintechs Need to Know
For Canada's fintech sector, these changes will impact investment, regulation, taxation and international trade and growth. Below are five announcements made since March 20, 2025, and what they mean for fintech:
1. Capital Gains Tax Hike Cancelled
Prime Minister Mark Carney has cancelled the previously proposed increase to the capital gains inclusion rate, which would have raised the taxable portion of gains above $250,000 from 50% to 66.7% (controversial policy). Also, the government will still increase the Lifetime Capital Gains Exemption (LCGE) to $1.25 million from 2025 which means that entrepreneurs can protect (tax-exempt) an additional $233,164 compared to the LCGE in 2024 ($1,016,836).
That's good news for startup founders and investors. It's supportive of innovation because it rewards risk-taking and helps nurture entrepreneurial talent. Investors may be more willing to back early stage ventures if the tax environment remains favourable at exit, encouraging investment in innovative sectors.
2. Snap Federal Election Set for April 28, 2025
Carney has officially called a snap federal election for April 28, saying he needs a new mandate to deal with growing trade tensions with the U.S., a shaky economy, and pressure to stay competitive on climate and carbon policy. The outcome of a federal election can completely change the country's fintech policy agenda from open banking and digital assets to consumer protection and payments modernization. Regulatory clarity will likely be delayed until after the vote.
3. Corporate Tax Deferrals for Tariff Impacted Businesses & Eased Access to Employment Insurance (EI)
Ottawa will tariff impacted businesses delay their corporate tax payments from April 2 to June 30. This support is primarily targeted at companies that export physical goods that are directly affected by new U.S. tariffs. However, fintech companies with U.S. clients or disrupted revenue may also be considered on a case-by-case basis. If your business has been impacted by the trade situation, it’s a good idea to start gathering records now. More details on who qualifies will be released soon by Finance Canada.
See: Carney Shakes Up Leadership and Vows to Protect Canada
In the same release it was also announced that changes are being made to make it easier for workers laid off due to the trade conflict with the U.S. to access employment insurance. Note, fintech platforms offering tools in job search, benefits/support navigation, short term lending, gig economy income smoothing may also see an increased demand due to the potential impact of job losses.
4. Plan to Eliminate Interprovincial Trade Barriers
Prime Minister Carney announced that Canada will table legislation by July 1, 2025 to remove internal trade barriers between provinces to build a stronger and fairer economy. He plans to eliminate all federal barriers to interprovincial trade and labour mobility, and to remove all federal exemptions under the Canada Free Trade Agreement. He met with the premiers to share his plan of building a stronger Canadian economy including items such as mutual recognition of rules, harmonizing licensing, and standardization of goods and services across provinces. Standardized rules across provinces will reduce costs for businesses and consumers, strengthen domestic supply chains, boost productivity (fewer compliance headaches), and unlock new opportunities for Canadian firms.
5. Trade Diversification + Carbon Border Adjustment Commitment
Last week, Prime Minister Carney visited the U.K. and Europe to stress the importance of Canada strengthening trade ties with reliable partners beyond the U.S.. As part of Canada’s plan to diversify trade, the PM saidthat the EU is moving ahead with its carbon border taxes called Carbon Border Adjustment Mechanism (CABM), so Canada would benefit to keep its industrial carbon pricing system to avoid new tariffs on exports to Europe. This sounds reasonable but there's a trade-off. Since the U.S. won't have the same carbon rules, the higher carbon costs in Canada could make our goods less competitive to our biggest export market - the U.S. Per reporting on the Hub, Carney put it bluntly: “Guess what one of the requirements is to diversify trade with the EU? A form of carbon pricing.”
See: The Crisis Canada and Fintech Can’t Afford to Waste
If The impact on fintechs may be twofold. Clean fintechs involved with ESG, carbon credit tracking/management, sustainability analytics etc stand to benefit but legacy exporters, and fintechs serving them, may feel the cost squeeze of stricter environmental standards.
Closing Outlook
These announcements highlight Canada's evolving federal economy strategy. Ottawa is recalibrating its tax approach, trade perspectives, and domestic relief tools in response to Trump's tariff war and global volatility. Fintech leaders should actively track these changes and be ready to adapt as more policies roll out after the election.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Canada Invests $240M in Cohere for AI Data Centre
AI Investment | March 21, 2025
Image: Freepik/rorozoa
Cohere Secures $240M from Ottawa to Build Canadian AI infrastructure and Address Data Sovereignty
On March 202025, Anita Anand, Minister of Innovation, Science and Industry, announced that the Government of Canada is investing up to $240 million in Cohere Inc. to build advanced AI infrastructure and help the country compete globally in artificial intelligence. This funding is part of a $725 million project that Cohere is leading to create a state-of-the-art AI data centre in Canada, so Canadian firms don't have to rely on foreign tech giants. Canada has world class researchers but currently lacks the computing power and infrastructure needed to keep top AI talent and their companies at home.
Key Insights
- The $240 million from Ottawa is part of a broader $725 million project to boost Canadian AI infrastructure and protect data and intellectual property. The project is critical for protecting Canadian data and IP in sectors like health, finance, and government where data residency and compliance are essential.
- Cohere is the first recipient of funding under the AI Compute Challenge. The funding is part of the government’s $2 billion Canadian Sovereign AI Compute Strategy, which includes funding for infrastructure, supercomputing, and small to midsized enterprises (SME) support.
See: Brookfield Invests €20 billion in France’s AI Infrastructure
- This investment provides support for Canada's entire AI ecosystem, and will help attract large scale private and commercial investment to the sector, and help retain top AI talent. Canada is home to some of the world's top AI researchers like Geoffrey Hinton and Yoshua Bengio but many AI startups have been acquired or relocated due to lack of infrastructure.
- The AI data centre will be built by Cohere and it will power not only it's own large language models but will also be accessible to other domestic AI firms and researchers, so the benefits can be shared across the tech and academic communities.
Closing Thought
This investment is more than a cheque to a single company. The goal is to ensure Canadian AI firms and researchers can develop domestically, long term, without relying on foreign infrastructure. It'll be a key part of Canada's AI ecosystem that will also serve the public's interest and support economic growth and resilience.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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