As artificial intelligence (AI) continues to reshape industries, access to high-performance computing is becoming a critical factor in determining which countries and companies will lead innovation in AI. AI is rapidly emerging as a driver of national economic prosperity and has meaningful national security implications. To strengthen Canada's position in the global AI landscape, the federal government has introduced initiatives to expand access to high-performance computing and build domestic infrastructure.
This article explores two such initiatives available to Canadian businesses: the AI Compute Access Fund and the AI Sovereign Compute Infrastructure Program. Together, these programs aim to address the growing demand for compute power, support Canadian innovation and reduce reliance on foreign infrastructure.
The AI Compute Access Fund
Launched in March 2025, the AI Compute Access Fund provides up to $300 million to help small and medium-sized enterprises (SMEs) access the compute power needed to develop and commercialize home-grown AI products and solutions. Successful applicants may receive:
- funding between $100,000 and $5 million per project;
- coverage of up to two-thirds of costs for Canadian cloud-based AI compute services; and
- coverage of half the costs for non-Canadian services.1
Eligible applicants must be Canadian-registered for-profit companies that have fewer than 500 employees, a Canadian-based R&D team and a clear commercialization plan. Companies must be developing AI products and services or be part of a consortium led by a corporation or LLP. Funding may be non-repayable, conditionally repayable or repayable, depending on the project's alignment with national priorities and public benefit. Eligible companies can submit proposals for compute costs between $100,000 and $5,000,000 until March 31, 2028.2
This initiative is designed to remove one of the most significant barriers to AI development, namely compute cost, while encouraging companies to build and scale their innovations domestically.
The AI Sovereign Compute Infrastructure Program
Complementing the AI Compute Access Fund is the AI Sovereign Compute Infrastructure Program, which allocates up to $705 million to build a Canadian-owned, high-performance supercomputing system. This infrastructure will support both researchers and industry, significantly increasing Canada's compute capacity.
Key features of the program include:
- an intention to build a state-of-the-art supercomputing system located in Canada;
- a focus on data security, ensuring that Canadian data, including in regulated or sensitive sectors, remain secure;
- support for cross-sector partnerships between academia, industry and government; and
- an emphasis on green infrastructure, with sustainability and energy efficiency at the core of its design.3
The program also includes a smaller secure computing system for sensitive research and national security applications, led by Shared Services Canada and the National Research Council.4 While the initial statement of interest phase has closed, the next stage requires a full proposal aligned with government objectives. Stay tuned for the Government of Canada's guidance on program requirements.
Implications for Canadian Businesses
These initiatives signal a shift in Canada's approach to AI competitiveness. For businesses, the implications are significant and include:
- Improved Access to Compute: SMEs can better compete with larger players by leveraging subsidized access to powerful computing resources.
- Reduced Reliance on Foreign Infrastructure: With domestic supercomputing capacity, businesses can mitigate risks related to data residency and geopolitical uncertainty.
- New Collaboration Opportunities: The infrastructure program encourages partnerships across sectors, opening doors for co-development and shared innovation.
- Regulatory Alignment and National Security: These investments are part of a broader push to support responsible AI development, including voluntary codes of conduct and safety standards. For more information on Canada's efforts to protect its critical infrastructure, see our article: "Canada Is Protecting Its Critical Infrastructure: What Does This Mean for Your Business's Cybersecurity?"
Looking Ahead
Canada's AI Compute strategy represents a foundational investment in the country's digital future. For Canadian businesses, it provides an opportunity to explore how these programs can support their AI ambitions, from R&D to commercialization.
Footnotes
1 Program Guide: AI Compute Access Fund
2 Program Guide: AI Compute Access Fund
3 AI Sovereign Compute Infrastructure Program
4 Government of Canada opens applications for the AI Compute Access Fund - Canada.ca
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
