Science and Research Committee on Dec. 3rd, 2025

[The Chair, Liberal, Salma Zahid]

I call this meeting to order.

Welcome to meeting number 20 of the Standing Committee on Science and Research. The committee is meeting to study artificial intelligence.

I would like to make a few comments for the benefit of the witnesses and members. Please wait until I recognize you by name before speaking. Just as a reminder, all comments should be addressed through the chair.

I would like to welcome our witnesses for today. We have the Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation. He is also the member of Parliament for Toronto Centre, which is very close to my heart, because I landed in 1999 and that was my first home.

We are also joined by Mark Schaan, associate deputy minister, Department of Industry.

Mr. Solomon, you will have five minutes for your opening remarks. Thanks a lot for appearing before the committee and taking time out of your busy schedule. After that, we will get into the rounds of questioning.

You have the floor. Please go ahead.

[Evan Solomon, Liberal, Minister of Artificial Intelligence and Digital Innovation]

Thank you very much, Madam Chair.

Members of the committee, thank you for inviting me to appear as part of your study on artificial intelligence.

I'm joined today by an official from my department.

I welcome the chance to speak about the work under way to strengthen Canada's leadership in these important and rapidly evolving fields.

AI is already shaping every sector of our economy, and that will only grow. Canada enters this moment with real strengths: world-class researchers, a vibrant ecosystem of start-ups and scale-ups, and recognized leadership in responsible AI. We are investing in every aspect of this ecosystem and therefore in the future of our economy, especially in science and research, which are the focus of our discussion today.

Canada, of course, was the first country to launch a national AI strategy, back in 2017, and we're very proud of that. We were one of the first to appoint a dedicated minister for the transformative technology AI, and I'm honoured to have the job.

However, leadership is not a birthright. Countries around the world are moving very quickly, and Canada is doing the same with ambition, clarity and responsibility. Our guiding principle is AI for all. We know technology moves at the speed of innovation, but citizens move at the speed of trust, so we need to build on a foundation of trust so we can have the economy of the future.

Canada has deep roots in this field. Our researchers invented modern AI, and Canada is home to the three great pioneers: Yoshua Bengio at Mila, our institute in Montreal; Geoffrey Hinton at Vector Institute, in Toronto; and Rich Sutton at AMII, in Edmonton. All three, by the way, are Turing Award winners, the highest honour in AI around the world. Of course, Geoffrey Hinton also won the Nobel Prize. They are widely known as the godfathers of AI. Their work has laid the foundation for today's systems and continues to anchor Canada's strength in research, training and responsible AI leadership.

Since this new ministry was established, we've taken concrete steps to build on its foundation. This fall, we launched the national AI strategy task force, bringing together 28 leaders from research, industry, labour and civil society. In over 30 days, they completed a focused sprint that is informing a refreshed AI strategy that we will introduce in the new year, almost two years ahead of schedule.

To support this, more than 11,300 Canadians shared ideas through our public portal, which is the largest digital engagement in our department's history, along with dozens of submissions from stakeholder groups. Canadians are part of this moment, and they want AI to deliver real benefits.

That's why we're investing in the infrastructure that accompanies the need to compete. Our $300-million AI compute access fund is part of a $2-billion sovereign AI compute strategy. That received more than 1,300 applications, demonstrating the strength and ambition of Canada's AI ecosystem.

The economic impacts are also clear. Today, 800,000 Canadians work in the tech and digital sector, the largest and fastest-growing job sector in the country, and 150,000 workers specifically work in AI. These are good, high-paying jobs that are central to our future prosperity.

A recent Deloitte and Vector Institute study found that AI contributes roughly $100 billion to Canada's economy, with more than 17,000 new AI-related jobs created in Ontario alone last year. For every federal dollar invested in this sector, nearly $10 has come from the private sector. That's why we're supporting companies that are building globally competitive solutions. Let me name a few.

We signed a memorandum of understanding with Cohere, a large language model, one of the best in the world. It was the first of its kind between the Government of Canada and a Canadian AI company to explore how advanced models can support better government services for the public.

In Oakville, companies like Geotab are using AI across millions of connected vehicles. On the west coast, companies like Sanctuary AI are pushing the frontier of robotics. These firms reflect the breadth of Canadian talent and the opportunity ahead.

We continue to strengthen our research foundations. Last week alone, I announced $42 million for the University of Toronto to expand its advanced computing capacity, delivered through the Digital Research Alliance of Canada. AMII, Mila and Vector remain critical anchors for research excellence and talent development.

The next great discoveries are happening right here in Canada. Talent is one of our great advantages. Budget 2025 included $1.7 billion to attract 1,000 of the top researchers around the world and their labs to come to Canada and expand pathways for skilled workers in AI, quantum and emerging technologies.

The government is leading by example. We are introducing AI tools inside departments—working with trusted technology providers—to modernize service delivery and ensure that public servants have the tools they need, and we're following clear principles of safety, transparency and human oversight to deliver better services to Canadians.

Finally, trust is essential. That is why we are preparing updated privacy and data protection legislation to keep the information of Canadians safe, to protect children online and to ensure companies are accountable for how personal data is handled in the age of AI.

All this work is about Canada's modern digital sovereignty. It means having the capacity, the talent, the infrastructure and the partnerships to shape our digital future and maintain our leadership in science and research. We are building in Canada, we are buying in Canada and we are believing in Canada.

We're the pioneers and the foundation of modern AI. We are turning that foundation into economic prosperity, stronger public service, better jobs and trusted innovation for Canadians.

Thank you, and I welcome the committee's questions.

[The Chair, Liberal, Salma Zahid]

Thank you, Minister.

We will now start our first round of questioning of six minutes each.

We will start with MP Baldinelli.

Please go ahead. You have six minutes.

[Tony Baldinelli, Conservative, Niagara Falls—Niagara-on-the-Lake, ON]

Thank you, Madam Chair.

Thank you, Minister, for being with us this afternoon.

I'm going to get right into it, Minister.

In terms of AI, what is your definition of sovereignty as it relates to IP and data retention?

[Evan Solomon, Liberal, Toronto Centre, ON]

Sovereignty is at the core of our strategy. Making sure that we build a sovereign AI ecosystem is critical. Sovereign AI has multiple definitions. There's an operational one and there's a legal one in terms of how we RFP, but I would say this is about making sure that Canada's most sensitive data is protected under Canadian law. That's—

[Tony Baldinelli, Conservative, Niagara Falls—Niagara-on-the-Lake, ON]

Can I follow up on that question?

In August, as you indicated earlier, the government signed an MOU with Cohere, and $240 million was provided from the Canadian sovereign AI compute strategy. The government's own release said that it will “enable Cohere to secure enough private capital to incentivize its strategic partners to build a new cutting-edge, multi-billion dollar AI data centre in Canada.”

One of the first moves Cohere did with the $240 million was partner with an American company called CoreWeave to build this AI computing data centre. What is so Canadian or sovereign about this?

[Evan Solomon, Liberal, Toronto Centre, ON]

Thank you for asking a great question about one of our national champions, Cohere, which we are very proud to back.

I just want to remind the committee and honourable members that there are only four countries in the world that have large language models: the U.S., China, France and Canada, with Cohere. This investment in Cohere—remember that this was an investment in Cohere—we are absolutely proud of, because they now have a large language model—

[Tony Baldinelli, Conservative, Niagara Falls—Niagara-on-the-Lake, ON]

But the investment in the data—

[The Chair, Liberal, Salma Zahid]

I'm sorry for interrupting. It's one person at a time. I would request all MPs to let the minister respond.

[Tony Baldinelli, Conservative, Niagara Falls—Niagara-on-the-Lake, ON]

Thank you, Madam Chair.

Minister, with all due respect, on the investment in the data centre and the creation of the data centre, we've had companies come forward here. One, for example, was eStruxture, which mentioned that they've built and have control of 14 data centres.

Is there anything in the MOU that guarantees that the investments you've provided go to Canadian companies?

[Evan Solomon, Liberal, Toronto Centre, ON]

We are very proud to have invested in Cohere. This is the most important issue—that we are investing in Canadian companies that keep their IP in Canada.

They employ 450 people here in Canada. They are trading around the world. I think most Canadians are very supportive of Cohere's business and of the fact that they are a Canadian company building here in Canada. How they want to grow their company is a Cohere question, but I will tell you this: We are very proud to invest in Cohere.

[Tony Baldinelli, Conservative, Niagara Falls—Niagara-on-the-Lake, ON]

Do you have any guardrails as part of the money you have provided to ensure that the money you are providing—taxpayer dollars—will ensure that Canadian companies, like eStruxture, for example, which came forward.... They had no idea of this arrangement between Cohere and CoreWeave.

Going back to the sovereignty issue, CoreWeave is an American tech company. The U.S. CLOUD Act was enacted in 2018. That act allows U.S. enforcement to compel U.S. technology companies to disclose data they control regardless of where that data is stored globally, so CoreWeave, which is building this data centre, is subject to the U.S. CLOUD Act.

[Evan Solomon, Liberal, Toronto Centre, ON]

Let me tell you, first of all, how proud we are to invest in Cohere.

[Tony Baldinelli, Conservative, Niagara Falls—Niagara-on-the-Lake, ON]

That doesn't meet your definition of "sovereign".

[Evan Solomon, Liberal, Toronto Centre, ON]

Cohere absolutely is a sovereign company.

[Tony Baldinelli, Conservative, Niagara Falls—Niagara-on-the-Lake, ON]

No. CoreWeave and the data centre, the U.S. CLOUD Act....

[Evan Solomon, Liberal, Toronto Centre, ON]

I've said repeatedly that sovereignty is not solitude. Our great Canadian companies are going to trade with many companies and work with many global companies, but Cohere is a Canadian company employing 450 Canadians—good jobs—and trading around the world, and it's building a large language model. Canadian companies like RBC are their clients. Bell is their client. They are a champion company, and we are very happy to have made sure they have the capacity and tools to grow into a global company.

[Tony Baldinelli, Conservative, Niagara Falls—Niagara-on-the-Lake, ON]

Minister, CoreWeave is a partner with Nvidia, which supplies CoreWeave with GPUs, also known as graphics processing units. In fact, they signed a deal between themselves for $6.8 billion in August.

Are you aware of any of these companies being connected in any way with Brookfield?

[Evan Solomon, Liberal, Toronto Centre, ON]

We are very happy to have invested in Cohere. I'm not sure who Cohere's clients may be, but I will say that the investment in Cohere to make sure they have the capacity and tools to thrive, they employ Canadians and they keep our IP here is very much a champion story that I'm sure the honourable member would also support.

We want Canadian companies here. We want the IP here. We want Canadian jobs here, and we want to make sure that, of the four countries that have large language models—and it's competitive—Canada has Cohere. I'm sure the honourable member would support the idea of keeping Cohere here, building jobs here, building investment—

[Tony Baldinelli, Conservative, Niagara Falls—Niagara-on-the-Lake, ON]

Canadian jobs here, yes.

[Evan Solomon, Liberal, Toronto Centre, ON]

These are Canadian jobs.

[Tony Baldinelli, Conservative, Niagara Falls—Niagara-on-the-Lake, ON]

We're creating data centres with U.S. companies, which could be subject to the U.S. CLOUD Act. How is that very sovereign?

This is my last question for you. As the Minister of AI, have you ever approached the Prime Minister to have discussions with regard to his holdings in companies such as Nvidia or in inputs...such as Brookfield?

Brookfield and Nvidia just signed an agreement on November 19 for the creation of $100-billion AI infrastructure fund. Are you aware of that?

[The Chair, Liberal, Salma Zahid]

The time is up. We'll have to proceed to the next member. Maybe you can get to that in the second round.

We will now proceed to MP Rana for six minutes.

Please go ahead, MP Rana.

[Aslam Rana, Liberal, Hamilton Centre, ON]

Thank you, Madam Chair.

Thank you, Minister, for your time.

As you mentioned, back in 2017, Canada was one of the first countries to launch a national AI strategy. How did this prepare Canada for recent innovations in AI?

[Evan Solomon, Liberal, Toronto Centre, ON]

Thank you so much for the question. I really appreciate it.

We have been investing in Canada's AI ecosystem to build it from top to bottom. It's very important that Canada has a sovereign ecosystem that we support so it can work with companies around the world, but keep Canadian jobs and Canadian IP here. That's why we've invested in foundational research, in our commercialization, in our large language model companies and in making sure that we have the opportunity to grow. We have a pair of world-class researchers, with great digital infrastructure with our industry partnerships.

I'm glad the honourable member is asking me about this. We should be very proud of our three national institutes. What's happening at Vector in Toronto, Mila in Montreal and AMII in Edmonton is something Canadians would be very proud of. I wish Canadians could see not just the remarkable, world-leading research, but the commercialization that goes on there in turning that research into remarkable companies. These companies are going on to do remarkable things.

If I may, I'll give you one example of the things we see. RL Core Technologies is a company started by a professor of machine learning called Martha White. She works in Edmonton at the University of Alberta. Martha White was doing research in how AI can change water purification systems, which are very important in Canada and around the world. She never thought that her research would turn into a company, but she created a company and has raised between $7 million and $10 million for it. She's the CEO of RL Core Technologies. We met with her. She's employing people. She's converted her research into jobs, working with AMII, one of our research institutes.

That's another great example of how when you invest here and you become leaders in AI research and science, which is what this committee is all about, you see how that turns into commercialization, jobs and solutions that will have a positive impact on the world.