Lynn Johannson, Advisor, Sustainability and ESG
January 4th, 2024
Lynn Johannson, President of E2 Management Corporation and Catalyst for THE Collaboration
In a care[...]
Category Archives: Fintech AI/ML, Data-driven, Automation, Generative AI
Plaid Raises $575M to Scale Fintech Infrastructure
Financing | April 14, 2025
Image: Freepik
Plaid’s $575 Million Series D Signals a Deeper Strategy in Fintech Data and Embedded AI
Financial infrastructure provider, Plaid, announced on April 3 2025, that they raised $575 million Series D at a valuation of $6.1 billion valuation led by Frank Templeton, BlackRock, Fidelity, and others including existing investors such as NEA and Ribbit Capital. While the valuation is significantly lower than it's 2021 peak of $13.4 billion, Plaid's latest round is a story of consolidation of it's role at the heart of embedded finance, and not of decline.
Plaid is a backbone of embedded finance with a footprint that spans more than 8,000 apps, including many widely used fintech tools and providers in Canada and the U.S. For Canadian fintech companies, this raise hints at where industry is heading and who will control its most critical pipes.
A Profitable Platform in a Tough Market
Unlike most fintech firms still chasing break-even, Plaid finished off 2024 with positive operating margins, strong ash flows and a 25% yoy revenue increase. In Plaid's letter to shareholders, 2025, CEO and Cofounder Zach Perret explained that it has a usage based billing model where Plaid earns revenue when an end user signs-up, takes actions in connected apps, or remains active on a per-user-per-month basis. In a market where profitability is favoured over growth at all costs, these numbers speak volumes.
See: 12 Market Entry Approaches for Fintech Startups
The platform has achieved a core level of recurring annual revenue that allows it to reinvest confidentially in areas like AI powered fraud prevention and data-science enhanced credit scoring.
“Our core business has consistently grown double digits year-over-year despite 2022 and 2023 being the worst slowdown in fintech in the last two decades.”
Plaid's shareholder letter also reports that over 50% of Americans with a bank account have used the platform, either directly or through partner apps. Its customers include enterprise players like Affirm, Chime, Robinhood, SoFi, Citi, and H&R Block, plus thousands of fintech startups globally.
“Our products are the bedrock upon which many of the most well-known financial brands are built.”
Strategic Round
Unlike past funding frenzies, this round was strategic, institutional, and about positioning control over the infrastructure of financial data, an area about to be transformed by AI and embedded finance.
In the past few years, Plaid has transformed itself from a bank linking utility into an infrastructure platform with multiple tools, such as alternative credit data, anti-fraud solutions, and bank payments infrastructure. CEO Perret explained that "New products represented >20% of ARR in 2024, compounding at 93% annually.” So it's no longer just about the interface, the tools and stack is consolidating into robust infrastructure.
See: Why No Code AI Agents Matter for Fintech in Canada
A large portion of the funds are being allocated to convert restricted stock units (RSUs) into shares to provide liquidity for long term employees and retention strategy for talent. The rest of the funding will continue to support product development powered by data science, machine learning, and AI.
The Open Banking Delay That’s Costing Canada
Plaid’s expanding capabilities also highlight Canada’s open banking delays. Canada is expected to implement open banking in 2026, but it doesn't have it yet, despite Finance Canada researching it and promising its implementation for years.
Without a formal framework in place, Canadian fintechs must rely on third-party data aggregators like Plaid to access banking information, including firms like Wealthsimple and KOHO. While using Plaid's banking access tools enables fintechs to get up and running quickly and innovate in the short term, it places critical infrastructure in the hands of foreign companies, raising concerns about data sovereignty and long term competitive capacity.
See: The Crisis Canada and Fintech Can’t Afford to Waste
Daniel Eberhard, CEO of Koho to the House of Commons Standing Committee on Finance:
“In Canada, we do not have open banking. Every time we need to interact with the incumbent financial system, we’re forced to build workarounds.”
Closing Outlook
Plaid's $537 million strategic series D signals a consolidation of fintech infrastructure. Capital is becoming more selective and innovation is leading towards AI and embedded services, so the companies that control the access to data and financial infrastructure are gaining strategic ground. Canadian fintechs and policymakers of open banking in Canada should be watching developments closely to ensure Canada can remain competitive and not overly reliant on U.S. infrastructure.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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OneVest Closes $20M Series B to Lead Wealthtech
Financing | April 11, 2025
Image: Freepik
OneVest Secures $20M in Series B to Build the Future of WealthTech in North America
On January 29, 2025, Calgary and Toronto-based fintech firm OneVest announced the close of a $20 million Series B round, led by Salesforce Ventures and joined by Allianz Life Ventures, TIAA Ventures, and returning backers like OMERS Ventures, Deloitte Ventures, Fin Capital, Luge Capital, and Pivot Investment Partners.
See: OneVest’s Rapid Expansion Powered by a $17M Funding Round led by OMERS Ventures
OneVest estimates that $84 trillion of wealth will be passed down from Baby Boomers to Gen X and Millennials over the coming decades, creating a massive opportunity and challenge for financial institutions. OneVest's platform is positioned to offer financial institutions, such as banks, insurers, asset managers and RIAs, a module tech platform to build or upgrade their wealth management services. Companies ca upgrade outdated infrastructure by plugging in only the components they need, reducing time and cost to market.
Amar Ahluwalia, CEO of OneVest:
“We are tackling massive challenges in an industry that’s been traditionally slow to adopt new technologies. Having such esteemed investors solidifies our position to reimagine wealth management technology for enterprises across the U.S. and Canada. With this new funding, we are poised to achieve our goal of becoming the leading wealth management platform in North America.”
Flexible, Smart, and Built for Scale
The OneVest platform offers financial institutions end-to-end wealth offerings or customized tools to match their requirements. Advisors can manage portfolios more efficiently with a hybrid experience that blends automated insights with human guidance. OneVest is investing in AI-powered decisions making tools and building out it's capabilities in alternative investments, helping firms better service their clients who are looking to diversify beyond traditional assets.
See: Wealth Management Insights for Fintechs and Investors
OneVest continues to strengthen its strategic partnerships with major players like BlackRock, Vanguard, and Salesforce Financial Services Cloud, helping expand its reach across the financial services sector. Since many clients use Saleforce, OneVest plans to further streamline the advisor-client experience across systems.
What’s Next for OneVest
With this funding, OneVest will focus on scaling operations, growing its team, and continuing product development. Its mission has been clear from the start. To become the leading infrastructure provider for wealth management in North America by providing financial institutions modern tools so they can keep up with the changing needs of their clients.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Waymo Plans to Train AI Using In-Car Camera Footage
Privacy | April 7, 2025
Image: Freepik
Waymo’s In-car Data Plans Echo Orwell's 1984
As featured in TechCrunch, autonomous robotaxi firm Waymo is reportedly preparing to use in-car video data recordings of its identifiable passengers to train AI systems. Apparently, a researcher uncovered a 'draft privacy policy' that raises red flags, suggesting that users would not be directly notified or prompted to opt in. Call it ambient surveillance, or outright overreach but this invisible, continuous breach and approach to privacy is becoming normalized and embedded into business models of modern tech.
See: Ensuring Data Privacy in AI-Driven ID Scanning: Balancing Innovation and Compliance
Waymo clarified later that the feature is still work-in-progress but when companies at the cutting edge of mobility, fintech, and smart infrastructure, treat the public like collateral damage, it's time for people to stand up and push back against being a character right out of George Orwell's 1984 - that's right, Big Brother.
Surveillance Is No Longer Just About Security
Grocery stores are using facial recognition to monitor stores and shoppers behaviour, or how about surveillance and sensors at cashierless stores. Banks are using keystroke tracking to monitor employees.
Surveillance used to be about security but it's evolved into consumer experiences, services design, and product optimization. People now enter physical or digital spaces without even knowing whether their voice, face, movement or even tone is being tracked and analyzed for analytics or AI training. It's a slippery slope and can erode consumer trust, especially if it breaks a core fintech and digital innovation principle based on 'permission'.
Surveillance Free Zones?
These would be places or environments where surveillance monitoring simply isn't allowed or doesn't happen. These zones would offer privacy and a break from that feeling of being watched, studied, analyzed.
See: Major Data Breach @Finastra and Canadian Banks?
To some degree we have these private spaces in our lives today, at our home, or safe space but what if your favourite financial app disabled behavioural tracking by default and that was a differentiator in their business model where privacy, trust, transparency and customer empowerment are core to long term adoption and growth of a product or service.
Consent Needs a Redesign and Value Prop
Surveillance free experiences can built trust and help companies differentiate but the real opportunity is in redefining what it means to people who opt in.
Today the act of opting into an activity is a 'legal gate' where if a user clicks and 'agrees' to move forward then they have allowed it. What about a different model based around value, so if a user provides consent then they actively allow it but in exchange they want something of value in return.
The obvious value exchange is monetary where if someone's data is helping train a commercial AI model then that person's data could generate a tangible return, such as revenue sharing, or some type of platform equity, or a Web3 environment that tracks your data flows and offers tokenized compensation tied to impact and usage.
See: US Financial Surveillance Report Shows Privacy in Crisis
Another value exchange driver could be utility. Where sharing behavioural data leads to a better outcome, such as improved fraud protection, more accurate credit scoring, optimized financial coaching etc. In this way, users see the benefit clearly, and they should have the option to participate or not.
Some users may be motivated by purpose. Canadians for example may show a willingness to share data if it serves the public good, such as improved healthcare models, smarter urban planning, or inclusive innovation.
Any form of consent must put users in the driver's seat and allow them to control their participation. They need to be able to see and understand how their data is going to be used, for how long and in what ways, and have the option to revoke it. Any approach that's going to work in support of long term adoption will need to put participants at the forefront and treat them as humans, not data sources.
Canada Can Lead on Privacy Innovation
Waymo’s plan whether it comes to fruition or not, highlights how easily surveillance can be baked into a future services - literally in a legal and privacy document that most users will not read. Even companies with strong brand trust are drifting towards this world of data collection by default. That's why surveillance, privacy and consent matters.
See: Balancing AI Automation and Ethics in Fintech
Canada seemingly has the tools, policy infrastructure, and appreciation for leading privacy first innovation. There's a growing public awareness and need for privacy updates at the national level per the work being done on the Artificial Intelligence and Data Act. Perhaps regulation will only go so far and businesses will drive the privacy momentum.
Trust is a core input of innovation, and those that prioritize people, not just data, will lead it.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Programming Trends 2025
April 7, 2025
We can only compare the modern pace of life to the rapid development of technology. Everything is constantly changing and evolving; you risk becoming obsolete if you don't keep up with these changes. That's why we at Muteki Group have compiled a short article with programming trends 2025. This will help you incorporate new strategies into your development plan for this year.
Additional Power: Muteki Group CTO as a Service
Strategic leadership is vital for enterprises looking for effective scaling in 2025. Not all startups and small businesses can afford to hire a full-time high-level Chief Technology Officer (CTO) throughout the development cycle. In reality, the role of a CTO is often only necessary at specific strategic points during development. Our experience working with businesses of various sizes has shown us that even skilled development teams benefit from having strategic leadership on their projects. A practical solution to this dilemma is outsourcing this role and choosing Muteki Group CTO as a service.
By collaborating with Muteki Group, you can take advantage of our CTO as a Service, which allows you to access strategic leadership on a subscription basis. This approach means you only engage a CTO as needed, helping you avoid the financial burden of a full-time hire, and only pay for the hours when the CTO is actively working on your project. Additionally, if your project's needs change and require a CTO with different expertise, we can provide you with a suitable candidate.
We offer three packages for our CTO as a Service: full-time, part-time, or on-demand cooperation, allowing you to invite a specialist whenever you need one. This flexible cooperation model ensures you have the strategic leadership necessary to thrive in a rapidly evolving technological landscape.
Programming trends 2025
The programming is evolving due to the influence of AI, the increasing demand for quicker project launches, and the rise of low-code platforms. These significant trends are set to shape the industry's future. Let's explore the most impactful trends that are expected to affect the whole 2025 year.
1. AI is changing how software is developed, tested, and maintained. Developers want to maximize their work routines with AI by delegating simple functions. On the other hand, the positive news is that developers will have time for more creative tasks. At Muteki Group, we have a free AI consulting service that will allow you to understand which areas AI will be effective for your business in 2025.
2. Low-code platforms let users you develop some simple functions without needing programming skills. Their popularity is growing because they offer flexibility.
3. Cloud development is becoming the industry standard, especially with the rise of microservices. By 2025, edge computing—processing data closer to users—will help improve the performance of Internet of Things (IoT) devices and real-time applications.
4. As cyber threats increase, security is now a key part of software development. The more user data a business handles, the stricter the rules it must follow to protect that data. For financial projects, blockchain has become a trend because it offers a secure way to handle transactions and verify identities.
5. Users want fresh experiences, which is why virtual reality (VR), augmented reality (AR), and IoT will still be in demand in 2025. At Muteki Group, we assist companies in adapting to this new landscape, from choosing the right platforms to creating engaging experiences.
6. The push for environmental friendliness is changing how developers use technology. Green coding means optimizing software to lower energy use, making apps better for the environment.
2025 year brings some tech changes and we must use these changes to our advantage. Technology will keep evolving, and businesses must keep up with trends to provide the experiences users want. This includes using AI, VR, AR, and the Internet of Things, as these technologies can offer more than standard mobile apps or websites.
See: Disruptive Innovations Driving Global Change in 2025
You need strong leadership and a skilled, dedicated development team to implement your tech idea to stay competitive entirely. At Muteki Group, we have been building dedicated development teams since 2015. We access the Ukrainian IT market, allowing us to develop a team that meets your specific needs at brilliant rates. Contact Muteki Group to develop innovative solutions!
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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AI Concierge Tech and the Future of Finance
AI Innovation | April 4, 2025
Image: Unsplash/Solen Feyissa
Amazon’s 'Buy for Me' Innovation Extends What Digital Assistants Can Do, and Finance May Be Next
On April 3 2025, Amazon quietly rolled out a new artificial intelligence (AI) feature called 'Buy for Me'. That is if a user finds an item that they want on another retailer's site, Amazon's agentic AI on its app will complete the purchase on the user's behalf, handling all the details such as checkout, payment, and even delivery tracking.
Buy for Me is currently available on both iOS and Android for a limited number of U.S. customers. Amazon plans to test with a limited number of brand stores and products and then intends to roll the offering out to more customers and incorporate more third party brand stores and products based on iterative feedback.
See: How PhD-Level AI Agents Will Change Financial Services
This isn't just about shopping convenience. It's Amazon extending it's AI concierge systems beyond its own moat and walls and into the open web. It acts as a secure authorized buying agent for users and goes beyond giving suggestions and 'gets things done'. This is where things can get interesting for financial services.
What If Finance Worked the Same Way?
Imagine an AI concierge that doesn’t just show you your bank balances, but it can move money between your accounts, negotiate better rates, or automatically file your taxes when it’s time on your behalf.
You wouldn't have to log into five different apps to manage investments, savings, loans, and bills because you could simply as your AI assistant 'Finance for Me'.
“Can you move $500 from savings into my RRSP and check if there’s a better mortgage rate than I’m getting now?”
And it would.
Smart financial AI is proactive and not meant to be a dashboard with traffic lighting that shows you how much you spent at restaurants last month. It would be designed to be your go to problem solver on all things finance, securely and in real-time able to iterate and execute tasks across different fintech companies and institutions on your behalf.
From Shopping Assistant to Financial Concierge
'Finance for Me' could remove the complexities and taboo that's often associated with dealing and managing money. Here's just a few examples of how such an agentic AI assistant could help you:
- Better Mortgage Rates - Your AI could check for competitive interest rates across lenders (plus evaluate qualitative perks) and even handle the paperwork on your behalf if you decide to switch.
- Automatic Tax Planning - As you spend, earn, and invest, the assistant could optimize deductions and pre-populate your tax returns.
- Smarter Investing - Whether you're building a portfolio or just starting to dip your toes into markets and figure out how best to use your TFSA or RRSP, your 'Finance for Me' assistant could track fees, rebalance your accounts, and move funds for you all in real-time and based on your goals.
- Family Finances - For couples, families or caregivers, an advanced AI assistant could design and track a shared budget, make regular RESP contributions, and handle short, intermediate and longer term financial planning, according to your goals and risk tolerate.
- Active Small Business Support - Entrepreneurs could delegate tasks to a business version of 'Finance for Me' that could forecast cash flows, make vendor payments, or remit your GST payments on your behalf.
Yes, all of the above could happen in the near future with full consent, transparent and clear logs, and security safeguards.
See: FSB’s Warnings of Hidden Stakes of AI in Finance
Open Banking standards would enable connections to be made securely. Regulators and lawmakers would need to create a responsible agentic AI framework and all transactions would have to be compliant and in regulatory alignment...but it's technically possible or getting closer to that reality (on a ridiculous curve of innovation and disruption).
Why It Matters
Canada's financial ecosystem is full of great tools but they remain siloed, reactive (not predictive/proactive), and are often out of reach to those without deeper pockets, knowledge, and time. A 'Finance for Me' AI dedicated to optimizing finance on your behalf would be a game-changer and truly democratize financial capabilities. Amazon's 'Buy for Me' innovation is just at the beginning of the 'let me delegate that to my AI assistant curve. Fintechs, banks, and regulators should be eyes wide open.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Why No Code AI Agents Matter for Fintech in Canada
AI Innovation | April 2, 2025
Image: Freepik/AI
The Quiet Revolution of Real-time, No-Code Agents, And Fintech Canada Needs to Get in the Game
Inspired by VentureBeat's article on a startup called 'Emergence AI', company tagline 'Agents Creating Agents', this article unveils another opportunity for Fintechs in Canada to participate in what's known as the No-Code Agent revolution. It sounds simple and scary at the same time.
At first, it looked like just another AI tool
But when Emergence AI launched their new platform something felt different. You type in what you want, whether it's a task accomplished, a goal achieved, or a process. The AI system reads your text, builds an agent on the spot, and before you know it hands you back an AI agent worker that knows what to do. No code. No engineering team. Just real development being taken care of by something that didn't even exist five seconds earlier.
See: Smarter API Integration with VoPay’s AI-Powered Assistant
And if that initial task spawns another task or challenge? Well, it builds a second agent. And a third. Like an instantaneous workforce unfolding in real time, or one job/task at a time. Believe it or not that's the trajectory we're on right now and we're closer to the tipping point of massive innovation than most people realize or can even appreciate.
So What’s Actually Possible Today?
More than you think, but not everything (yet)...
Task automation across workflows is working now - check ✅. From sales outreach to on-boarding to weekly reporting, these no-code developed agents handle it all. Think Zapier + ChatGPT + smart logic + memory (better than yours and mine!), all wrapped in a conversational UI.
Emergance AI's biggest leap is letting agents create other agents in real time. While these agents have autonomy, it's up to a point currently. They still follow human-defined goals, thankfully. And you're still the architect.
See: Microsoft Unveils New Game-Changing AI Sales Agents
No-code interfaces are a gift to non-engineers. You describe the outcome, and the system builds the logic. This is why operational teams, marketers, and HR folks - not just developers - are jumping in.
It’s usable. It’s working. And it’s scaling fast.
Can it/they Replace Skilled Workers?
Not yet. And maybe not ever for some things because agents currently don't really understand like people do.
They only have limited context (aka the one that you give it), so they can miss nuances. And even with the right prompts and rules, hallucinations can sneak in so validation currently matters.
See: Can AI Replace Federal Workers? DOGE’s Experiment
Plus there's some hesitancy to give agents full access to your private data like CMR, documents, client data, contracts etc, so unless guardrails lock it down, security still takes precedence.
And ethics aren't yet built in, so strategy and sensitive decisions still need people to make the call. Oversight isn't optional.
What Makes a “Super powerful” Agent?
Below is a list of 5 core capabilities, and Emergence AI is tackling all five. That’s why they’re garnishing some serious attention, and why this isn’t just another hype cycle.
| Capability | What it Means |
| 🧩 Tool use | Calls APIs, triggers workflows, updates systems |
| 🔁 Recursion | Can spawn other agents or adapt based on outcomes |
| 🧠 Memory | Remembers what it’s done, adjusts to goals over time |
| 🧭 Planning | Can break a task into steps and execute a full plan |
| 🔐 Guardrails | Follows permissions, error checks, safety boundaries |
Canada’s Moment to Build
To our public knowledge, there isn't a Canadian-made version of a no-code AI agent creating agent tech yet.
We have AI talent. We have deep research hubs. We have strong values on privacy, inclusion, and transparency.
See: National Plan to Unlock Growth and Innovation
But we’re not building the all the AI platforms just yet so it's a gap and a huge opportunity.
Imagine a no-code AI agent system that:
- Works in English and French
- Respects our privacy laws
- Connects directly to Government Services, CRA, FINTRAC, banking APIs
- Helps startups, credit unions, and fintechs automate securely
- Includes embedded audit trails and ESG metrics
Someone has to build it, because if we don't our ecosystem will be powered by someone else's tools, running on someone else's rules. It can work seamlessly within Canada's AI infrastructure and ecosystem and help power Canada's future.
Final thought
Right now, that future is being typed into a prompt box and generating outputs and productivity in real time. Canada’s fintech innovators have a big opportunity to build something truly ours. Let's not miss this one!
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Support NCFA by Following us on Twitter!Follow @NCFACanada |
OpenAI Secures $40B – What It Means for Canada
Funding | April 1, 2025
Image: Freepik AI
The Largest Private Tech Raise in History Just Happened
On March 31 2025, OpenAI announced the largest private tech raise in history (according to CNBC), raising a whopping $40 billion valuing the AI giant at $300 billion including major backing by SoftBank, Microsoft, Thrive Capital, and others.
OpenAI's blog post:
"Today we’re announcing new funding—$40 billion at a $300 billion post-money valuation, which enables us to push the frontiers of AI research even further, scale our compute infrastructure, and deliver increasingly powerful tools for the 500 million people who use ChatGPT every week."
OpenAI’s record-setting raise shows where AI is headed
The $40 billion raise was led by Japan’s SoftBank who contributed $30 billion together with a syndicate of other players like Microsoft, Thrive Capital, Coatue, and Altimeter who contributed the remaining $10 billion, for a $300 billion valuation.
See: Altman Rejects Elon’s Unsolicited $97.4B OpenAI Bid
Approximately $18 billion is being set aside for the Stargate Project, which is building a new network of AI data centers across the U.S. that would provide OpenAI the computing power to develop even more advanced AI systems towards artificial general intelligence or AGI.
OpenAI's flagship product, ChatGPT, now has over 500 million weekly users who rely on the tool as part of their everyday life and work. Despite such massive growth, OpenAI reported a $5 billion loss on $3.7 billion of revenue last year in 2024, and doesn't project that it'll be cash flow positive until 2029.
Global AI spending is exploding. According to a Gartner report highlighted on VentureBeat, global generative AI spending will reach $644 billion in 2025 - that's up 76% from 2024. 80% of that spend is expected to be invested into hardware infrastructure like servers, chips, and power. It's advancing a reordering of global economic power through AI infrastructure.
AI is no longer a research field, it's now global infrastructure at scale, and those building the platforms, data centers, and models today will likely control the economic upside tomorrow.
Canada’s Research Momentum Isn't Enough Anymore
Canada was ahead of the curve when it launched its initial Pan-Canadian AI Strategy in 2017. Our research labs, Mila, Vector, and Amii, are world class, and more recent efforts like Canada's $2 billion Sovereign AI Strategy, including a $300M Compute Access Fund for SME growth are important initiatives.
But in scale? They’re a fraction of what’s needed. OpenAI alone just raised 20x what Canada has committed over the next 5 years, and in the face of a projected $644 billion global spend in 2025, Canada risks being left behind unless we rethink our approach.
A Smarter Path Forward for Canada
Going toe to toe chasing gazillion parameter large language models may not be realistic, or even necessary, for Canada. There's a growing case for investing in smaller, efficient, and open source models that cost vastly less to train and operate. They also require less energy and hardware infrastructure and are relatively easy to govern and fine tune for regulated sectors.
Initiatives like Hugging Face’s tiny LLMs, ongoing research at Canadian institutions, and Cohere's $240 million AI data center project, open the door to develop an AI commercialization strategy around lightweight, safe, and sovereign models that are suitable for practical needs from fintech to healthcare and public services.
To stay in the game and lead responsibly, Canada must:
- Put more funding into AI businesses (not just research labs) that help Canadian companies turn AI ideas into real products by giving them better access to both government and private investment
- Invest and build in shared infrastructure like data centers and cloud systems here in Canada so startups and researchers don’t have to rely on foreign tech giants for computing power (👉 Brookfield Invests €20 billion in France’s AI Infrastructure)
- Focus on developing compact AI systems that are safer, cheaper, and easier to use in areas like finance, healthcare, education, and government
See: A Look Inside Canada’s AI Commercialization Challenge
- Offer incentives to banks, hospitals, utilities, and others to choose local AI solutions instead of imported ones
- Create smart and agile regulations that keep AI safe and fair without blocking new ideas or slowing down growth
- Make Canada a magnet for top AI talent. Give companies, developers, researchers access to the tools, compute power, and support they need to build in Canada and thrive here
Why It Matters
AI is out of the bottle and no longer just research. It's forging global infrastructure for the future economy. While Canada still has amazing talent and values, without larger investment, smarter models, and real infrastructure at home, we risk being left behind. Canada should be building smaller, safer, and sovereign AI ecosystem that works for Canadians and the world.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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