Geoffrey Hinton, one of the pioneers of modern artificial intelligence, believes Canada has an opportunity to strengthen its position in the global AI race as the United States faces continuing challenges around skilled immigration.

Hinton, who won the Nobel Prize in Physics for his work related to machine learning, moved from a well-funded position at Carnegie Mellon University to the University of Toronto in the 1980s. The decision helped establish Toronto as an important centre for AI research over the following decades.

Hinton told CNN that Canada’s ability to attract international talent gives the country an advantage, particularly when US immigration policies make it harder for technology companies to retain skilled workers.

Toronto's AI ecosystem grows around Hinton's research

Hinton's academic work helped create a generation of researchers and entrepreneurs who later contributed to Canada's technology sector.

Among them is Nick Frosst, who studied under Hinton and became one of his early hires at Google's Toronto AI lab in 2017. Frosst later co-founded enterprise AI company Cohere, which is valued at about $7 billion according to the report.

Frosst chose to build his company in Toronto rather than relocate to the United States, citing the city's cultural diversity and broader environment.

Hinton argues that Canada also needs to ensure it captures the economic value created by AI rather than becoming dependent on technology developed elsewhere.

He has warned that if automation causes major disruption to employment, the economic gains generated by AI should remain within Canada so they can be taxed and used to support workers affected by the changes.

Immigration policies become a competitive advantage

Toronto's technology sector has benefited from Canada's approach to skilled immigration.

According to the report, Canadian work permits have provided an alternative for engineers who encounter difficulties obtaining or renewing US H-1B visas.

One example cited is an Amazon engineer who was unable to renew an H-1B visa in the United States. The engineer was subsequently able to obtain a Canadian work permit and became one of the early hires at CentML.

Gennady Pekhimenko, who sold CentML to Nvidia and now works as a senior director of AI software at the chipmaker, said Canada's ability to attract international professionals has helped companies recruit people with experience in global technology markets.

Jordan Jacobs, managing partner at Radical Ventures, also pointed to Canada's immigration policies as an important factor in attracting skilled workers.

Toronto ranks among the world's top tech talent markets

Toronto's advantages extend beyond immigration.

An annual analysis by commercial real estate firm CBRE places Toronto as the world's third-ranked technology talent market, behind San Francisco and Seattle and ahead of New York City.

The University of Toronto and the Vector Institute, which Hinton co-founded, have played important roles in the city's research ecosystem.

Toronto also combines universities, technology companies, startups, finance, healthcare and a large arts community. Frosst told CNN that the absence of a single dominant technology culture encourages people from different industries and backgrounds to work together.

The city's location also makes it relatively accessible to major US business centres, with direct short-haul connections to cities including New York, Washington and Chicago.

Global technology companies expand their Toronto presence

The city's growing AI credentials have attracted major technology companies.

Google, Nvidia, Meta and Microsoft have established research operations around the University of Toronto. Pharmaceutical company Sanofi has also committed nearly $300 million to a local AI centre.

The expansion has strengthened the connection between academic research, startups and established companies.

For Hinton, however, the larger question is whether Canada can turn its growing AI expertise into lasting economic strength.

His concerns extend beyond competition with the United States. He has argued that Canada should develop enough domestic AI capability to avoid becoming dependent on technology originating from either the US or China.

As AI development increasingly influences software, research, automation and employment, Canada's ability to retain researchers, attract engineers and build companies around its AI expertise could become an increasingly important part of its economic strategy.