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Trudeau's Big Bet to $1.8 Billion Package to Boost Canada's AI Sector

Trudeau’s Big Bet to $1.8 Billion Package to Boost Canada’s AI Sector

Leave a Comment / Artificial Intellegence, News, Tech News / By

In a significant move to establish Canada as a global leader in artificial intelligence, Prime Minister Justin Trudeau has announced a sweeping $1.8 billion support package for the country’s AI sector. The funding, aimed at research, development and integration of AI across various industries, underlines Canada’s commitment to advancing technological innovation and economic growth.

A Strategic Investment in Innovation

Trudeau's Big Bet to $1.8 Billion Package to Boost Canada's AI Sector

Image Source: wsj.com

During a press conference in Ottawa, Trudeau highlighted the strategic importance of artificial intelligence in driving future economic prosperity and tackling societal challenges. Trudeau said, “Artificial intelligence is not just a new technology. It is a new way of looking at the world, our challenges and opportunities. With this investment, Canada is placing itself at the forefront of this technological revolution.”

The $1.8 billion package is designed to support a variety of initiatives, including the expansion of research facilities, the development of AI applications in health care and environmental management, and the promotion of ethical AI practices. A significant portion of the funding will also be allocated to skills training and education to ensure a skilled workforce capable of leading AI innovation.

Bolstering Canada's AI Ecosystem

Canada’s AI strategy focuses on promoting collaboration between universities, research institutions and the private sector to accelerate the development and commercialization of AI technologies. This approach aims to create a strong ecosystem that supports startups and established companies alike, promoting both innovation and job creation.

This announcement has been welcomed with enthusiasm by the technical community and academia. “This investment is a game-changer,” said Dr. Yoshua Bengio, a leading AI researcher at the University of Montreal. “This will enable us to attract and retain the brightest minds, push the boundaries of what AI can achieve and ensure Canada remains a major player on the global stage.”

Addressing Ethical and Societal Implications

Recognizing the potential ethical and social implications of AI, the Canadian government has stressed the importance of developing AI technologies responsibly. The funding package includes provisions for the study and implementation of ethical AI guidelines, aiming to ensure that advances in AI benefit all sectors of society without increasing inequalities or violating privacy.

Also Read: Fluid Topics Leads with €15M for Revolutionary GenAI Customer Service

Looking Forward

With this historic investment, Canada aims to not only enhance its competitive edge in the global AI landscape, but also lay the foundation for sustainable growth and innovation. The focus on ethical considerations and workforce development ensures that Canada’s AI sector will grow in a way that respects both individual rights and social values.

As the world races to harness the potential of artificial intelligence, Canada’s $1.8 billion investment is a bold step towards shaping the future of the technology and its application for the betterment of society.

Google

Google to block news in Canada over law on paying publishers

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Google announced its intention to block Canadian news on its platform within Canada, following in the footsteps of Facebook’s Meta Platforms Inc.

This move comes as a response to a new law, the Online News Act (Bill C-18), which requires payments to local news publishers.

Google
Image Source: cnbc.com

The Canadian media industry has been advocating for tighter regulations on internet giants like Facebook and Google, aiming to allow new businesses to recover financial losses resulting from the increasing dominance of these platforms in the online advertising market.

The Canadian government estimated that news businesses could potentially receive around C$330 million ($249 million) per year from the mandated deals under this legislation.

Also Read: Google lays off staff at its mapping app Waze

However, Heritage Minister Pablo Rodriguez clarified that the platforms are not immediately obligated to comply with the act and expressed the government’s willingness to engage in consultations with them regarding regulatory and implementation processes.

Facebook and Google have argued that the proposed legislation is unsustainable for their businesses. For months, they have hinted at the possibility of blocking news availability in Canada if the act was not amended.

However, the Canadian federal government has resisted making changes, and Prime Minister Justin Trudeau accused the companies of employing “bullying tactics.”

In response to the law, Google’s president of global affairs, Kent Walker, stated in a blog post that they believe the law is unworkable and that the regulatory process would not resolve the “structural issues with the legislation.”

Consequently, Google informed the government that it will remove links to Canadian news from its Search, News, and Discover products within Canada once the law goes into effect. The specific news outlets affected by this decision will be determined based on the government’s definition of “eligible news businesses” when the rules for implementation are finalized.

Furthermore, Google will terminate its News Showcase program in Canada, which involves agreements with 150 news publications across the country. One of these agreements is with Reuters, which produces News Showcase panels, including in Canada.

The Online News Act mandates that online platforms negotiate with news publishers and compensate them for their content. A similar law was passed in Australia in 2021, which led Google and Facebook to threaten to curtail their services in the country. However, both companies reached agreements with Australian media companies after the legislation was amended.

Google argues that Canada’s law is broader than those in Australia and Europe, as it assigns a value to news story links displayed in search results and can potentially apply to outlets that do not produce news content.

Google has proposed that payment should be based on the display of news content itself, rather than links and that only businesses adhering to journalistic standards should be eligible for compensation.

Facebook

Why are Facebook and Instagram ending news access in Canada?

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Meta Platforms, the parent company of Facebook and Instagram, plans to block access to news content on its platforms for all users in Canada when a new law requiring internet giants to pay news publishers comes into effect.

The Canadian parliament passed “Bill C-18,” known as the Online News Act, which mandates platforms like Facebook and Google to negotiate commercial deals and compensate news publishers for their content. Both Meta and Google had previously warned that they would restrict access to news articles if the legislation was passed without amendments.

Facebook
Image Source: dailytimes.com.pk

Facebook argues that news articles constitute less than 3% of the content on users’ feeds and claims that news has no economic value for the company since its users do not primarily rely on the platform for news consumption. They also highlight the benefits journalists receive from posting their work on the social media platform.

Google, on the other hand, contends that Canadian law is broader than similar laws in Australia and Europe, as it places a monetary value on news story links displayed in search results and can potentially apply to outlets that do not produce news.

Google proposed revisions to the bill, suggesting that payment should be based on the display of news content rather than links and that only businesses producing news and adhering to journalistic standards should be eligible for payments.

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In Australia, both Google and Facebook initially threatened to limit their services when similar laws were enacted in 2021. However, they reached agreements with Australian media companies after amendments were made to the legislation. As a result, Meta and Google have been paying around A$200 million ($134 million) annually to Australian news outlets.

Lawmakers in Meta’s home state of California and the U.S. Congress are pushing for similar rules, as they see a need to empower news organizations to negotiate collectively with platforms like Google and Facebook.

Meta generates 40% of its revenue from the United States and considers Australia and Canada among its significant markets. If Meta fails to obtain exemptions or modify the rules in Canada, it could potentially face similar challenges in the United States.

In 2022, U.S. lawmakers introduced a revised version of a bill aimed at facilitating collective negotiations between news organizations and platforms. Additionally, the New Zealand government announced its intention to introduce a law requiring major online companies to compensate local media companies for the appearance of their news content on digital feeds.

Canada

Canada offers more than C$13 billion for the VW battery plant

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According to a government source, Canada has agreed to offer up to C$13 billion ($9.7 billion) in subsidies and a C$700 million grant to entice Volkswagen AG to locate its North American battery production in the nation.

According to the source, the entire Canadian investment—which might possibly include money from the Ontario government—will be roughly equivalent to what Volkswagen would have received from the United States under the Inflation Reduction Act (IRA).

Canada
Image Source: finance.yahoo.com

The source stated that the subsidies will be paid out over a ten-year period, but the automaker chose not to respond. The source told Reuters that the plant’s construction will cost roughly C$7 billion, corroborating a previous story by Bloomberg News.

Also Read: Meta lays off tech teams, battering employee morale

The agreement demonstrates how the United States’ green package, which provides $369 billion in subsidies for electric automobiles and other green technologies, is pressuring foreign governments to increase financial incentives to entice investment.

According to Handelsblatt, which cited a business source with knowledge of the situation, the brand-new Volkswagen battery plant in Canada is expected to have a maximal capacity of 90-gigawatt hours, which will be sufficient to produce batteries for more than a million vehicles yearly.

Volkswagen opted not to respond to the Handeslblatt story. More information on the project is anticipated to be released on Friday during a meeting between the leadership of its battery unit PowerCo and Canadian Prime Minister Justin Trudeau in Ontario, where the plant would be located.

The contract is drafted in such a way that Canada’s production subsidies are only guaranteed for the duration of the Inflation Reduction Act. Canada’s incentives for clean production will decrease proportionately if those in the US are cut.

Additionally, under its Strategic Innovation Fund, Canada is providing Volkswagen with capital expense grants totaling nearly C$700 million. Despite its name, the Inflation Reduction Act actually implements substantial incentives for low-carbon companies, primarily via production tax credits.

According to a board member for technology at Europe’s largest automaker who spoke to Reuters in March, PowerCo aspires to become a global battery provider and meet half of its own requirements with plants mostly in Europe and North America.

By 2030, PowerCo, which was founded last year, wants to have annual sales of over $21.94 billion. In Ontario, production is anticipated to begin in 2027.

Also Read: Google wins appeal of $20 mln US patent verdict

Chrystia Freeland, Canada’s finance minister, cautioned that democracies need to prevent a “race to the bottom” in corporate subsidies that might erode their tax bases and social protection systems in an address in Washington last week.

The Volkswagen contract in Canada also makes one wonder how much financial assistance other automakers and battery manufacturers may be eligible for. A $4 billion joint venture between LG and Stellantis was announced last year in Windsor, Ontario, a city close to Detroit.

Meta

Meta to end news access for Canadians

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Facebook-parent Meta Platforms Corporation told reporters Saturday that if the nation’s Online News Act is enacted in its present form, it will end the accessibility of news and information for Canadians on its portals.

Meta
Image Source: gadgetsnow.com

The bill would require Meta and Google to discuss advertising deals and charge news publishing houses for their information. A Meta spokesperson argued that the proposed legislation was “neither sustainable nor workable,” and expressed concern that it would force them to pay for links or content that they did not post.

Also Read: Google tests blocking news content for some Canadians

The move follows Google’s recent tests on news censorship and both firms’ ongoing expansion of their market share in branding. The Canadian news media industry has called for more regulatory oversight of tech businesses.

The “Online News Act,” or House of Commons bill C-18, which was implemented in April of last year, outlined rules that would require platforms such as Meta as well as Alphabet Inc child company Google to discuss advertising deals as well as charge news publishing houses for their information.

“A legislative framework that compels us to pay for links or content that we do not post, and which are not the reason the vast majority of people use our platforms, is neither sustainable nor workable,” a Meta spokesperson said as a reason to suspend news access in the country.

Source: usnews.com

Meta’s move follows after Google began testing restricted news censorship as a possible reaction to the legislation last month.

The Canadian news media industry has pressed the government regarding more regulatory oversight of tech businesses so as to recover financial losses sustained over the years as technical behemoths such as Google as well as Meta progressively expand their market share in branding.

Pablo Rodriguez, Canadian Heritage Minister, stated in a statement issued on Sunday that it was disheartening to see Facebook stooping to threats rather than cooperating with the Canadian government in good conscience and that the C-18 bill was not related to how Facebook tends to make news media accessible to Canadians.

“All we’re asking Facebook to do is negotiate fair deals with news outlets when they profit from their work,” Rodriguez said. “This is part of a disappointing trend this week that tech giants would rather pull news than pay their fair share.”

Source: usnews.com

The year before, Facebook expressed concern about the legislation as well as warned that it could potentially be pressured to inhibit news-sharing on its platform.

Also Read: Instagram starts testing its age verification tools in more countries

Other nations which have questioned businesses like Facebook and Google to pay news publishing houses for material featured on their portals include New Zealand as well as Australia.

In December, New Zealand Broadcasting Minister Willie Jackson said, “It’s not fair that the big digital platforms like Google and Meta get to host and share local news for free. It costs to produce the news and it’s only fair they pay.”

Source: timesofindia.indiatimes.com
Google

Google tests blocking news content for some Canadians

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Google, a subsidiary of Alphabet Inc., announced on Wednesday that it is implementing tests that may restrict access to news material for certain Canadian users as a potential countermeasure to the government’s internet news law.

The Liberal government of Justin Trudeau unveiled House of Commons Bill C-18, the “Online News Act,” in April. This legislation outlined regulations that would compel Google and Facebook to enter into business agreements and compensate news publishers for their material.

Image Source: economictimes.indiatimes.com

In an email statement to Reuters, a Google spokesperson stated, “We’re briefly testing potential product responses to Bill C-18 that impact a very small percentage of Canadian users. We run thousands of tests each year to assess any potential changes to Search.”

Also Read: Amazon Web Services pairs with Hugging Face to target AI developers

As it considers potential responses to the bill, the company said on Wednesday that it is momentarily restricting access to news material for less than 4% of its Canadian users. The update affects both its widely used search engine and Android’s Discover tool, which offers news and sports content.

The test, which will last for approximately five weeks, has an impact on all forms of news content, the company said. The tech giant acknowledged that the time-limited tests “limit the visibility of Canadian and international news to varying degrees”.

Canadians won’t be frightened, according to a spokesperson for Minister of Canadian Heritage Pablo Rodriguez, who also criticized Google for copying Meta’s strategy. She stated, “Canadians need to have access to quality, fact-based news at the local and national levels, and that’s why we introduced the Online News Act.

Tech giants need to be more transparent and accountable to Canadians.” Due to worries about laws that would require digital platforms to compensate news publishers, Facebook issued a warning last year that it might restrict the sharing of news material on its network in Canada.

A government report claimed that a similar law in Australia, which went into force in March 2021 after negotiations with major tech companies resulted in a brief suspension of Facebook news feeds there, has largely succeeded. The Canadian news media sector has fought Facebook and requested more control of tech firms from the government in order to make up for the financial losses the sector has endured as a result of Facebook and Google’s steady increase in market share of ads over the years. Since 2008, more than 450 Canadian news organizations have shut down, with 64 of those happening in the previous two years.

Also Read: Google Chrome rolls out long-awaited battery-saving features

Google voiced concerns about the proposed law to a House of Commons committee, saying that it would favor big publishers over smaller outlets, would not require publishers to follow fundamental journalistic standards, and could lead to the spread of “cheap, low quality, clickbait content” rather than public interest journalism.

The corporation has stated that it would prefer to contribute to a fund that would compensate news publishers indirectly, comparable to the Canada Media Fund. The bill was approved by the House of Commons in December and will soon be reviewed by the Senate.