Ottawa adds $500 million to Regional AI Initiative, lifting total federal pot to $700 million

The federal government on Tuesday put an additional $500 million over five years into the Regional Artificial Intelligence Initiative, bringing total federal funding for the program to $700 million, Canada.ca announced. Artificial Intelligence and Digital Innovation Minister Evan Solomon said the money is now available through Canada’s regional development agencies.

The expanded initiative is part of AI for All, Canada’s National Artificial Intelligence Strategy announced in June 2026. Ottawa says the goal is to help Canadian businesses adopt AI responsibly and to help Canadian AI companies commercialize and scale while keeping talent and economic value anchored in Canada.

Support will focus on sectors where Canada claims strong expertise, including health and life sciences, energy and natural resources, transportation, agriculture, manufacturing and robotics, plus other regional priorities. Regional organizations that connect firms with AI adoption and commercialization help are also eligible.

“The question is not whether AI will reshape our economy. It is whether Canada will capture the opportunity,” Solomon said in the release. Industry Minister Mélanie Joly, speaking for Quebec, said the priority is to give SMEs tools to adopt AI and help innovators commercialize and expand. Atlantic Canada Opportunities Agency lead Sean Fraser tied the funding to recommendations from the Atlantic Economic Panel.

FedDev Ontario said southern Ontario applications are open from Oct. 13, 2026, to Jan. 19, 2027, at 4:59 p.m. ET. Projects with eligible costs before March 31, 2027, must be submitted by Nov. 24, 2026. Since RAII launched in 2024, Ottawa says 218 projects have adopted or commercialized AI, creating or maintaining more than 1,100 jobs and leveraging about $1.77 for every dollar approved.

The announcement lands amid a busy autumn for Canadian AI and connectivity. Toronto-based Mecka raised a US$60-million Series B led by Sequoia earlier this month, and Cohere is opening an Ottawa office, CanadianAI noted. Separately on Tuesday, Montreal’s Terrestar Solutions said BroadForward signaling software is live on its network to route mobile and IoT traffic between satellite and cellular systems across rural Canada.

Businesses and organizations are directed to the Regional Artificial Intelligence Initiative pages for their regional development agency to apply. The federal release also lists related AI for All supports such as the LIFT program and the Compute Access Fund for financing, expertise and secure computing.

Sources: Government of Canada / FedDev Ontario news release (Oct. 13, 2026); FedDev Ontario, Regional Artificial Intelligence Initiative; CanadianAI (Oct. 13, 2026).