Federal government invests $7 million in high-tech firms in Ottawa

OTTAWA—The federal government announced on Monday, March 3 that it is investing $7 million in six high-tech firms with operations in the Ottawa area to support the development of their artificial intelligence (AI) technology. Families, Children, and Social Development Minister Jenna Sudds (Kanata-Carleton, Ont.) announced the funding at a press conference at the offices of InPho, a firm which makes fibre-optic chips that assist in computer-to-data-centre communications. “AI is changing the world and it is changing how we work and what we work on,” Sudds stated. Joe Costello, CEO of InPho, is originally from San Francisco. He heralds his Canadian workforce. “The highest concentration of the smartest people in the world for this kind of photonic communication are here in this area,” he asserted. InPho will receive the largest share of the money, $3 million, to support the sale of its fibre-optic chips. Communication Components Antenna Inc. (CCAI) is getting $2.1 million to commercialize a unified 5G and WiFi small cell platform. AVSS will get $1.07 million for its drone avalanche software and hardware platform. Trualta Care Network is in line for $750,000 to enhance its AI-enabled online caregiver education and support platform. NORTAC Defence will receive $250,000 to sell satellite applications for Android smartphones. Lastly, Mission Control is garnering $150,000 to expand its Spacefarer platform. Costello said the news of the federal grants helped InPho to get private investment in the firm during a recent round of financing. The news conference was held one day before the United States is set to impose new tariffs on Canadian goods. The American tech entrepreneur spoke against the move. “I think it’s going to create a mess,” Costello predicted. “The sooner you put in these ridiculous tariffs, it makes life incredibly difficult.” The biggest mess currently is the unknown nature of the tariff regime, he added. The press conference participants were asked about the potential for harm done by AI. Both the minister and the tech executive conceded that there are dangers. Sudds pointed to the work done by her colleague at Innovation, Science, and Economic Development (ISED). “As we talk about advancing AI and making investments in AI, it’s really important to ensure ‘AI for good’ and ensuring that the necessary guardrails are there,” she said. “Our government, through the leadership of Minister François-Philippe Champagne, has done some great work in progressing some of those efforts.” Costello said such worries are nothing new. “Every single technology can be used for good and for bad. That’s the bottom line,” he stated. “They all have been throughout human history. “ The federal government made a similar funding announcement Tuesday in Mississauga, Ont. The minister responsible for the Federal Development Agency for Southern Ontario, Ruby Sahota (Brampton North, Ont.), and Small Business Minister Rechie Valdez (Mississauga-Streetsville, Ont.) announced over $25 million for 18 growing AI and tech companies in the greater Toronto and Hamilton Area: ACTO Technologies Inc., Ada Support Inc., A.U.G. Signals, Bam Analytix, Blue J Legal Inc., DataDocks, Ecopia Tech Corporation, FactR Limited, ForceN Inc., GoFleet Corporation, Kama. ai., Loop Financial, MARZ VFX, Off2Class, Opifiny Corp., Skygauge Robotics, TCE Group and Verta Marketing Inc. This money is to help these companies to scale up and commercialize new products. Editor’s note: This story has been updated to include Tuesday’s announcement. ppark@thewirereport.ca

Federal government invests $7 million in high-tech firms in Ottawa

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By Paul Park
| March 3, 2025

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