One of the largest artificial intelligence firms globally is seeking entry into Canada, potentially with an enticing proposition that would typically be difficult to turn down. OpenAI is in the process of establishing a worldwide network of data centers to accommodate the vast volumes of data generated by its services, including ChatGPT, and Canada’s cost-effective energy resources could facilitate this endeavor.
OpenAI envisions AI and its accompanying infrastructure as the foundation of future economic growth, aiming to promote what it terms as “democratic AI.” In a recent move to seize opportunities, the company introduced “OpenAI for countries.” Concurrently, Canada, concerned about a protectionist U.S. administration and the dominance of influential American tech corporations bound by U.S. regulations, is striving to foster domestic AI initiatives. Paradoxically, OpenAI asserts that it can aid in this effort by establishing data center infrastructure within Canada.
With ongoing plans to expand its presence, OpenAI is exploring the construction of data centers in Canada, following its substantial $500 billion U.S. Stargate initiative in the United States and similar ventures worldwide. Chan Park, OpenAI’s Head of U.S. and Canada Public Policy and Partnerships, emphasized Canada’s abundant resources, including power and expertise, positioning the country to excel in technology leadership.
Park has engaged in discussions with key officials, including Artificial Intelligence Minister Evan Solomon, to explore potential collaboration. Canadian policymakers, public policy experts, and business leaders are increasingly advocating for “digital sovereignty,” which refers to a nation’s ability to manage its data and technological infrastructure independently, including domestic data ownership and storage.
Concerns arise from foreign entities owning Canadian data, as they may be subject to their respective countries’ laws, potentially leading to data transfers across borders. Experts highlight the prevalence of American companies processing the majority of Canadian data, prompting Canada’s pursuit of greater autonomy and control over its citizens’ data within its borders.
OpenAI’s emphasis on digital sovereignty as a selling point for its products drew attention from experts, who question the extent to which it can truly enhance Canadian sovereignty amid existing U.S. legislation governing data control. The 2018 CLOUD Act grants the U.S. government the authority to access data stored by U.S. companies worldwide, impacting data governance even if stored on Canadian servers.
Moreover, the Canada-U.S.-Mexico Agreement contains clauses restricting data transfer control between countries, potentially influencing data handling practices. With ongoing negotiations surrounding data sovereignty and evolving AI strategies, Canadian officials are keen on ensuring that any AI infrastructure in Canada adheres to local laws and regulations.
Recognizing the need for technological advancement, experts caution against isolating Canada in the artificial intelligence realm, emphasizing the importance of global collaboration. While leveraging foreign expertise can offer benefits, maintaining autonomy in relationships is crucial to mitigate potential repercussions.
As Canada navigates its digital future, the balance between external collaborations and internal technological development remains essential. Local enterprises like Cohere partnering with the government and advocating for homegrown solutions underscore the country’s efforts to bolster domestic technological capabilities while engaging on the global stage.