One of the largest artificial intelligence companies globally is reaching out to Canada, potentially with an offer that would be difficult to decline under normal circumstances. OpenAI is constructing a worldwide network of data centers to house the vast amount of data gathered by its services, such as ChatGPT, and Canada’s affordable energy could facilitate this endeavor.
The company envisions AI and its infrastructure as the foundation for future economic growth, aiming to promote what it terms “democratic AI.” Recently, it introduced “OpenAI for countries” to capitalize on this opportunity. In contrast, Canada, cautious of a more protectionist U.S. administration and the dominance of American tech giants, is striving to develop AI models domestically. Interestingly, OpenAI suggests it can assist in this effort by establishing data centers on Canadian soil.
Currently exploring the development of data center infrastructure in Canada, OpenAI is expanding on its $500 billion Stargate initiative in the U.S. and similar ventures worldwide. Chan Park, OpenAI’s head of U.S. and Canada public policy and partnerships, emphasized Canada’s abundance of essential elements required for building AI models, including power, resources, determination, and aspirations to lead in technology.
Park has engaged 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 pertains to a country’s ability to control its data and technological infrastructure, including domestic data ownership and storage.
Concerns arise regarding foreign companies owning Canadian data due to potential implications of being subject to their respective countries’ laws, potentially allowing data to be transferred across borders. Data centers are highly resource-intensive, consuming vast amounts of electricity and water to operate. OpenAI’s emphasis on digital sovereignty as a selling point for its products raises questions about its ability to truly promote Canadian autonomy, given existing U.S. legislation that limits a country’s control over data held by American firms.
The 2018 CLOUD Act grants the U.S. government authority to access data stored by U.S. companies globally, impacting Canadian data managed by American tech giants in Canada. Despite the challenges, experts acknowledge that Canada must tread carefully to balance advancing its AI capabilities while safeguarding its sovereignty and privacy interests.
While Canada seeks to enhance its AI industry, experts caution against isolating the country from global AI advancements. Collaboration with international firms may offer benefits but also poses risks to autonomy. The importance of nurturing homegrown technologies is highlighted as essential for Canada’s digital future, emphasizing the need to support domestic firms capable of developing sovereign digital solutions.