Government Grants
October 2, 2025
5 min read

AI Funding in Canada: Grants, Repayables & New Compute Support

Maya Chen
CPA — SR&ED Tax Specialist

Why this matters now. Canada doubled down on AI in 2024–2025. Beyond the well-known Scale AI cluster (the national AI supply-chain cluster), Ottawa launched an AI Compute Access Fund so SMEs can rent scarce compute to train and test models. Together with research-industry bridges like Mitacs, and market entry support like CanExport, the stack is stronger than ever. (Program details and recent news below.)

Core programs for AI teams

1) Scale AI (Global Innovation Cluster)

  • Funds collaborative, industry-led AI projects that enhance value chains (adopters + vendors + academia).
  • Active dealflow: Scale AI announced $98.6M for 23 projects in July 2025—evidence the program is live and competitive. (Scale AI)

2) AI Compute Access Fund (ISED)

  • New federal fund under the Canadian Sovereign AI Compute Strategy to help SMEs afford compute access.
  • Program guide notes support to mitigate high compute costs—with the fund designed to let SMEs scale training/inference on Canadian infrastructure. (ISED Canada)

3) Mitacs Accelerate

  • Applied R&D internships connecting grad talent to company projects; $15,000 per 4–6-month unit (company cash typically $7,500 per unit, leverage varies). Great for data science, ML engineering, and evaluation campaigns. (Mitacs)

4) CanExport SMEs (Global Affairs Canada)

  • For AI firms testing new markets: up to $50,000 (50% cost share) for market development, trade shows, and missions. Recent stats: 4,406 apps in FY 2024-25; ~36% funded (1,575 companies). (Trade Commissioner Service)

Provincial hooks to watch

  • Provinces often attach top-ups or run complementary programs (e.g., Ontario digital-adoption streams, clean-tech AI crossovers, Quebec innovation credits). Ryan’s Ontario directory is a good index when mapping provincial add-ons. (Ryan)

Strategy tips (fast wins)

  • Pair Mitacs (R&D) with Scale AI (deployment) to connect research proofs to production value chains.
  • Use Compute Access to accelerate training/benchmark phases; record GPU hours/logs for future SR&ED + audit trails. (ISED Canada)
  • When exporting, time CanExport with a funding window and show traction metrics to raise competitiveness. (Trade Commissioner Service)

Common pitfalls

  • Weak consortium design for Scale AI (thin adopter commitment).
  • No compute cost traceability for AI projects (hurts claims and budgets).
  • Treating grants in isolation instead of stacking appropriately (avoid double counting).

How GovMoney can help

We assemble an AI funding stack: Scale AI application strategy, Compute Access eligibility & budgeting, Mitacs scoping, and CanExport market entries—plus cost-tracking templates so your grant portfolio is audit-ready.

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