To secure Canada’s future in AI, we must out-smart, not out-spend

In the global race to build the future, there’s a simple truth: Canada will never have the buying power of the leading global superpowers, and will never win a brute force competition to offer the largest talent attraction packages, invest in the most startups, build the biggest data centres or buy the most chips. And trying to do so will only forge a path to permanent dependency.

This is particularly true for compute, where access to cutting-edge infrastructure has become one of the major gatekeepers of innovation. Consider the planned ‘Stargate’ AI supercomputer from Microsoft and OpenAI, a project with a reported price tag of up to $100 billion. A project of this magnitude perfectly illustrates the ‘brute force’ scale of investment now required to lead in ‘advanced AI.’ For years, we have felt the consequences of this dynamic: some of our most promising AI startups, and vast amounts of our national data and most critical research, are all increasingly run on foreign-owned cloud infrastructure. We have been outsourcing our digital destiny while trying to play by rules written for players with a different set of strengths. But we still have the time – and the talent – to change the game by creating something new.

The very foundation of the current computing paradigm, with its ever-larger and energy-hungry data centres, is beginning to crack under its own weight. Voracious energy consumption is already putting unprecedented strain on global power grids; in Ireland, for example, data centres now consume 20% of the country’s electricity, forcing the grid operator to pause new connections. But this moment of disruption can be Canada’s generational opportunity. Our path to AI sovereignty is going to require pioneering a smarter, more efficient, and fundamentally different approach to compute. The good news? No country is better positioned than Canada to lead in meeting this grand challenge.

The future of computing will be defined by new kinds of power, moving intelligence away from massive data centres. One path is ‘neuromorphic computing,’ which mimics the human brain’s incredible efficiency. Instead of the cloud, imagine sophisticated AI running on tiny, battery-powered devices, like a smart medical sensor continuously monitoring for early signs of retinal disease. Then there is ‘edge computing,’ which processes data instantly right where it’s collected, enabling robust systems like autonomous supply drones in our northern communities or precision agriculture in our fields so they can operate without constant connection to a distant data centre.

And then there is quantum computing, which, when integrated with AI, could take minutes to solve problems that would take today’s supercomputers millennia, revolutionizing fields like drug discovery or the creation of new clean energy materials. Further,Canada is one of the excessively rare places in the world with world-class ecosystems in both AI and quantum research.

So: while the giants are heavily invested in optimizing the old paradigm, Canada has the agility and the unique expertise to lead in the new one. To seize this opportunity, we must act decisively on four fronts.

First things first: we must secure our talent. The AI and quantum talent within our borders – a powerful mix of homegrown innovators and leading minds from around the globe – is the foundation of the ecosystem, and must be protected as a matter of national sovereignty. We must immediately renew and expand our investment in our researchers, signaling that Canada’s commitment to them is for the long haul. Alongside this fortifying move, we need an ambitious new mission. The world’s brightest minds are drawn to the challenge of building new, innovative tools. Creating something new and compelling, like a national centre focused on next-generation compute, would act as a magnet for talent. It would offer a compelling reason for our own experts to build their futures here at home, and for the world’s best to join them.

Next, we need to galvanize innovation and fund a new generation of Canadian ventures. Canada has to get serious about creating Canadian AI, quantum, and deeptech champions; companies that can bridge the gap from research to thriving business. This requires dedicated, early-stage funding mechanisms designed to provide that crucial first cheque to startups, de-risking innovation at its most vulnerable stage. A high-visibility initiative to spark an increase in AI ventures could incentivize entrepreneurs and capital to solve high-impact problems. These new companies, born from Canadian research, would then gain a unique competitive advantage from access to the ultra-efficient processors, novel compute architectures, and optimized AI models that a new national compute centre would provide, allowing them to out-maneuver global competitors on ingenuity rather than scale.

Third, Canada must make a dedicated and strategic investment in this compute of the future.  To seize this moment, we propose a landmark initiative: Canada’s Centre for the Future of Compute. This is not just another research facility. It is a strategic investment in our national sovereignty. A federal anchor investment would help create a world-class hub that brings together our leading ecosystems in AI, microelectronics, and quantum computing. This Centre would unite a powerful cluster of cutting-edge GPUs, alternative chip architectures, and quantum computers. It would house expertise in energy-efficient software, advanced optimization, and applied research. It would catalyze innovation, support startups and help scientists and engineers make the next great breakthroughs.

Finally, we must build global alliances from a position of leadership. Canada is not alone in seeking an alternative to technological domination by one or two superpowers. By leading in this new paradigm, we can become the essential partner for other like-minded nations, building a coalition dedicated to a more distributed, democratic, and sustainable technological future.

This is a moment in which we can choose to be bold, to invest in our strengths, and to build a future where the next generation of intelligent computing is not just used by Canadians, but is built, owned, and controlled here at home. It’s time to act and secure our place as a global leader in the tech of tomorrow.