One of the largest artificial intelligence organizations globally is seeking entry into the Canadian market, presenting a potentially compelling proposition. OpenAI is in the process of establishing a worldwide network of data facilities to accommodate the vast volume of data produced by its services, including ChatGPT. Canada’s affordable energy resources could prove advantageous in this endeavor.
OpenAI envisions AI and its related infrastructure as fundamental to future economic progress, aiming to advance what it terms “democratic AI.” In pursuit of this goal, the company recently introduced “OpenAI for countries” to capitalize on the opportunity.
Concurrently, Canada, cautious of an increasingly protectionist U.S. administration and the dominant American tech firms subject to its regulations, is striving to cultivate domestic AI models. Paradoxically, OpenAI proposes that it can facilitate this objective by establishing data center infrastructure within Canada.
The organization is currently exploring the development of data center infrastructure in Canada, expanding on its $500 billion Stargate initiative in the United States and analogous ventures worldwide. Chan Park, OpenAI’s Head of U.S. and Canada Public Policy and Partnerships, highlighted Canada’s abundant resources, including power and expertise, positioning the country as a potential technology leader during an interview at Toronto’s Elevate Fest.
Park has engaged with key officials, including Artificial Intelligence Minister Evan Solomon, to explore potential collaborative opportunities. Canadian policymakers, public policy experts, and business leaders have been increasingly vocal about the concept of “digital sovereignty,” emphasizing the importance of a country’s capacity to govern its data and technological infrastructure, including data storage within its borders.
Concerns have arisen regarding foreign entities owning Canadian data, potentially subjecting it to the laws of their respective countries, leading to data transfer risks. Canada aims to assert greater authority over its data, particularly in light of significant data center energy consumption and water usage concerns.
Guillaume Beaumier, an academic specializing in political science and international studies, expressed skepticism regarding OpenAI’s ability to significantly enhance Canadian sovereignty, citing existing U.S. legislation that constrains a nation’s control over data held by American corporations.
The 2018 CLOUD Act grants the U.S. government the jurisdiction to access data stored in servers owned by U.S. companies from anywhere globally. Despite negotiations between Canada and the U.S. on a bilateral agreement regarding the CLOUD Act, no formal accord exists. Many cloud storage servers and data centers in Canada are owned by major American tech companies, indicating that Canadian data may ultimately be governed by the U.S.
Canadian officials have emphasized the importance of ensuring that any AI or digital infrastructure developed in Canada, whether by local or international partners, complies with Canadian laws and regulatory frameworks. While the pursuit of digital sovereignty remains crucial, experts caution against impeding Canada’s technological progress in AI, essential for global economic transformation.
Maintaining a balance between leveraging foreign expertise for technological solutions and preserving autonomy is deemed essential. Collaboration with foreign firms could yield benefits for Canada, but vigilance is required to prevent undue reliance on external entities. This underscores the significance of nurturing homegrown technologies and supporting Canadian firms capable of developing sovereign digital solutions.
