Skip to content

Canada's Business and Tech Newsroom

  • Professional Subscription
  • Partnerships & Advertising
  • Licensing & Syndication
Log In Subscribe
Welcome,
  • My Account
  • Log Out
  • Business
  • Tech
  • National
  • The Big Read
  • Briefings
  • Commentary
Search
Log In Subscribe
Welcome,
  • My Account
  • Log Out
News

Ottawa puts $42.5M into new AI infrastructure at University of Toronto

News

Ottawa puts $42.5M into new AI infrastructure at University of Toronto

It’s the second major funding commitment from the government’s $2-billion plan to boost Canada’s AI compute capacity

By Catherine McIntyre
Exterior of a University of Toronto building
AI firms have urged Ottawa to roll out the Sovereign AI Compute Strategy faster, warning delays could make it harder for Canada to keep pace with other countries. Photo: JHVEPhoto/Getty Images
Nov 28, 2025
A A
A Small A Medium A Large
Share

Gift

Share

TORONTO — The federal government is spending $42.5 million to expand artificial intelligence infrastructure at the University of Toronto, in an attempt to make Canada’s research more competitive.

The money will bolster the computing capacity researchers use to power their AI-driven work with new infrastructure that’s not currently available in Canada. It will help more than double the number of chips it uses to train and run AI models, and pay for newer, more powerful chips for the university’s supercomputer system.

The investment is designed to address concern among academics and AI startups that Canada doesn’t have enough domestic compute power to meet the growing demand. Researchers have said the shortage limits the scale and speed of their work.

Talking Points

  • Ottawa is putting $42.5 million into new AI compute infrastructure at the University of Toronto to address a national shortage 
  • The funding is the second major commitment under the federal government’s $2-billion Sovereign AI Compute Strategy, which aims to build up Canadian capacity as other countries build their own AI infrastructure

“I’ve been meeting with stakeholders across the country and we just hear the same message: We need compute. We need it to be Canadian,” AI and Digital Innovation Minister Evan Solomon said at the funding announcement in Toronto Friday morning. He added that while the infrastructure is located in Toronto, it will serve researchers and industry players across the country. 

The funding comes through Ottawa’s Sovereign AI Compute Strategy, a $2-billion pool of money announced in the 2024 budget. The strategy aims to build more AI compute in Canada instead of relying entirely on foreign providers such as Nvidia, Amazon and Microsoft. In March, the government pledged up to $240 million through the plan to help Toronto-based Cohere buy AI compute at a new data centre that New Jersey-based cloud computing firm CoreWeave is building in Cambridge, Ont. The University of Toronto funding is the second commitment the government has announced through the strategy. 

Related Articles

OpenAI wants to be part of Canada’s sovereign AI play

By Murad Hemmadi

AI startups clamour for access to Canada’s $2B compute plan

By Murad Hemmadi

The Digital Research Alliance of Canada, an Ottawa-funded non-profit, will administer the funding and deliver the program.The government’s contribution includes $40 million for equipment in the 2025–26 fiscal year and $2.5 million over the following two years to support staffing and operations. The University of Toronto is putting $100,000 toward the initiative. 

Gift the full article

AI firms have urged Ottawa to roll out the Sovereign AI Compute Strategy faster, warning delays could make it harder for Canada to keep pace with other countries that are investing heavily in AI infrastructure.

University of Toronto president Melanie Woodin said the funding will strengthen the university’s position as a global AI leader and improve Canada’s ability to develop “cutting-edge” research and innovation. 

#artificial intelligence #Tech #University of Toronto

Loading...

Thanks for sharing!

You have shared 5 articles this month and reached the maximum amount of shares available.

Close
This account has reached its share limit.

If you would like to purchase a sharing license please contact The Logic support at [email protected].

Close
Want to share this article?

Upgrade to all-access now

Close
Gift the full article!

You have gifted 0 article(s) this month and have 5 remaining.

Copy link and gift
Copy Link
Email to a friend
Send Email
Gift on Social Media

Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.

Exterior of a University of Toronto building

Photo: JHVEPhoto/Getty Images

Most Popular This Week

A shot of a placard on a table reading "Let Alberta Decide." There is a person out of focus in the foreground wearing a cowboy hat.
The Big Read

What Alberta’s corporate heavyweights really think about separation

By Meghan Potkins
A person in glasses and a blue top is sitting and typing on a laptop in an office. A desktop screen next to the laptop displays some blurred-out coding work.
News

A niche white-collar role is becoming the AI industry’s hot new job

By Anita Balakrishnan
A logo that reads AI in blue lettering against a light yellow background.
News

What happened when a VC firm let AI do almost everything

By Catherine McIntyre
News

Canada joins the movement to make AI more open source

By Murad Hemmadi

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

A high-angle shot of workers sorting and packing lettuce along conveyors in an industrial facility.
Commentary

Carmichael: The age-old trade problem Carney’s trying to solve with food

By Kevin Carmichael

Briefing

GFL stock jumps on report of takeover interest

By Anita Balakrishnan   |   Jul 3, 2026

McKinsey to challenge internal leaders on AI plans under new leadership structure

By Anita Balakrishnan   |   Jul 3, 2026

Lobby group can participate in crypto miners’ lawsuits against Hydro-Québec, judge rules

By Martin Patriquin   |   Jul 3, 2026

Best business newsletter in Canada

Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.

Exclusive events

See the bigger picture with reporters and industry experts in subscriber-exclusive events.

Membership in The Logic Council

Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.

Recent Popular Stories

Analysis

It turns out Trump does need something from Canada—aluminum

By Joanna Smith   |   Jun 25, 2026
A close-up of a made-in-Canada stamp on the end of a cylindrical piece of raw aluminum.
The Big Read

What Alberta’s corporate heavyweights really think about separation

By Meghan Potkins   |   Jul 2, 2026
A shot of a placard on a table reading "Let Alberta Decide." There is a person out of focus in the foreground wearing a cowboy hat.
News

What happened when a VC firm let AI do almost everything

By Catherine McIntyre   |   Jun 29, 2026
A logo that reads AI in blue lettering against a light yellow background.
News

A niche white-collar role is becoming the AI industry’s hot new job

By Anita Balakrishnan   |   Jun 30, 2026
A person in glasses and a blue top is sitting and typing on a laptop in an office. A desktop screen next to the laptop displays some blurred-out coding work.
Exclusive

Ssense has laid off photo and make-up teams and says AI will do much of their work

By Catherine McIntyre   |   Jun 22, 2026
News

Alberta to free up a huge amount of power to attract Big Tech and its data centres

By Meghan Potkins   |   Jun 24, 2026
A wide landscape shot of high-tension power lines over green and golden fields in rolling countryside.

Canada's most influential executives and policymakers are reading The Logic

  • CPP Investments
  • Sun Life Financial
  • C100
  • Amazon
  • Telus
  • Mastercard
  • bdc
  • Shopify
  • Rogers
  • RBC
  • General Motors
  • MaRS
  • Government of Canada
  • Uber
  • Loblaw Companies Limited
logic-logo

Canada's Business and Tech Newsroom

100% human-crafted journalism

Newsroom

  • News Tips
  • AI Policy
  • Editorial Disclosures
  • Story Pitches

Company

  • About Us
  • Terms of Service
  • Privacy Statement
  • Corporate Information

Contact

  • Contact Us
  • Advertise
  • FAQs
  • Work at The Logic

© 2026 The Logic Inc. All Rights Reserved.

Trusted by leaders

Error

Account creation failed.

Please email us at [email protected].

Create Account

[wppb-register form_name=”cozmo-registration-form-for-modal”]

I do have an account
Login
or

[wppb-login]

I don’t have an account