Bell Canada has signed an artificial intelligence infrastructure deal with Cohere that will see the AI firm operate its large language models through Bell AI Fabric, with support from two other companies.

Under the agreement, Bell will provide data centre capacity at its facility in Merritt, B.C.

The companies are also working with Buzz High Performance Computing, a subsidiary of Vancouver-based Hive Digital Technologies Ltd., which will deliver an AI-native cloud layer using Quebec-based Hypertec’s hardware cluster and NVIDIA accelerated computing to support production-grade AI workloads.

Cohere, which is based in Toronto, will use the platform to operate its foundation models and support secure enterprise-grade AI solutions for government and business customers.

The four companies say they will build the conditions needed to conduct the critical research and development needed for AI models using Canadian infrastructure.

“This agreement underscores the role Bell AI Fabric is playing in helping organizations move from experimentation to production on infrastructure that is located, operated and governed in Canada,” said Michel Richer, president of Bell AI Fabric, in a news release.

The Montreal-based telecommunications giant announced the launch of Bell AI Fabric more than a year ago to provide services to Canadian businesses and governments when it comes to their AI needs, ranging from strategy and applications development to infrastructure deployment.

Bell has touted it as the largest AI compute project in the country.

Recently, Bell-parent company BCE Inc. upped its revenue target for its growing AI business as it moves forward with plans to build a cluster of data centres, while assuring it will maintain “responsible usage” of the technology. The company now expects to generate around $2 billion in revenue from its portfolio of AI-powered enterprise solutions by 2028.

Along with Bell AI Fabric, BCE launched tech services brand Ateko and cybersecurity brand Bell Cyber last year, forming the anchors of its pivot toward tech services. The company reported that AI-powered solutions revenue from those three brands grew 113 per cent year-over-year in its first quarter.

Bell and Cohere first announced a partnership last July to provide full-stack sovereign AI solutions for government and enterprise customers across Canada.

At the time, the pair said Bell AI Fabric would incorporate Cohere’s agentic AI platform North, making it available to government and enterprise customers and enabling them to create AI agents and automation solutions without having to manage AI infrastructure.

“For enterprises and governments, adopting AI is not just about having access to powerful models. It’s about knowing where those models run, how data is protected and whether the technology can be deployed with the security and reliability their work requires,” said Michael Pelosi, Cohere’s country manager for Canada, on Thursday.

“This collaboration gives Cohere another way to support customers in Canada with advanced AI that is built for real use, on infrastructure that reflects Canadian priorities.”

This report by The Canadian Press was first published June 18, 2026.

Companies in this story: (TSX:BCE, TSX:HIVE)

Sammy Hudes, The Canadian Press