University of Toronto Munk School

Canada and AI Sovereignty

The event introduced the "Sovereignty by Design" report, a joint effort by Sean Mullet and Jackson Khan that maps Canada’s path toward AI sovereignty. Hosted by the Munk School, the briefing highlighted the urgency expressed by Prime Minister Justin Carney at Davos: strategic autonomy will depend on a sovereign AI stack encompassing secure clouds, data, models, and enterprise applications. The authors dissected the AI technology stack into seven layers—from foundational data and hardware to cloud services, foundation models, orchestration, and applications—and paired this with five dimensions of digital sovereignty: jurisdictional, operational, technical, societal, and economic. Their heat‑map analysis pinpointed hardware (chips) and cloud infrastructure as the most vulnerable choke points, noting that advanced chips are concentrated in Taiwan, designed by ASML in the Netherlands, and dominated by Nvidia, while Canadian data centers, though numerous, lag behind hyperscalers. Key excerpts underscored the geopolitical reality: Canada must collaborate with like‑minded nations such as India, Australia, and European partners, and consider open‑source AI models as a counterbalance to private‑sector lock‑in. The report refrains from prescriptive mandates, instead offering a menu of policy options—ranging from modest domestic chip design initiatives to strategic partnerships and investment in advanced cloud capabilities. The implications are clear: without a coordinated strategy, Canada risks economic coercion and diminished national‑security posture. By aligning regulatory frameworks, fostering domestic talent, and leveraging international alliances, Canada can secure a resilient AI ecosystem that supports innovation while safeguarding sovereignty.