OTTAWA, Oct. 12, 2026 | Caseway, a Canadian AI company that builds tools for legal and defence uses, is turning away U.S. government work and a chance to pitch American investors, its CEO told Global News. The company is shifting its focus to Canadian defence and to opportunities in Europe and Taiwan.
“I’m not comfortable going in and helping the U.S. with their AI needs at the same time that they’re threatening us,” CEO Al Vigier said. He told Global News that U.S. President Donald Trump’s repeated suggestions that Canada become the “51st state” helped drive the decision.
What Caseway Gave Up
Caseway had secured one of eight presentation spots at a major industry conference where it could pitch to investors, Global News reports. Vigier called the opportunity significant, noting that large companies often raise rounds of $50 million or $100 million there. Caseway’s own funding figures were not disclosed.
The San Francisco Standard reported on Sept. 29 that Vigier pulled out of the AI Conference in San Francisco, where his participation was supported by the Canadian Technology Accelerator, a government-backed program that helps Canadian AI companies compete in U.S. markets. “It’s an ethical decision in addition to a political decision,” he told the Standard, saying Caseway will avoid U.S. defense contracts “for the next few years until there’s some clarity or stability.” The Standard reports that Caseway will honor its existing contracts and is still deciding whether to pursue more U.S. legal contracts. Its move into defence came less than a year earlier, prompted by a $75,000 grant from the Canadian government.
Funding at Home and the Government’s Response
Vigier said the biggest hurdle is finding money to grow. “On the investment side, it’s really bad. It’s hard to raise capital in Canada,” he told Global News. He said the Canadian government is focusing on defence for the first time and putting large sums behind it, and he pointed to a recent procurement effort as a test of whether Ottawa can move quickly enough to support domestic companies.
The federal government told Global News that entrepreneurs should not have to leave Canada to build globally competitive companies. The AI minister’s office pointed to funding commitments and plans to use the government as an anchor customer for Canadian AI firms. Global News notes that the government’s commitments to quantum computing, data centres and grid upgrades could take years and cost millions, if not billions.
Sean Mullin, a University of Toronto expert on innovation and technology policy, asked how Canada can avoid depending too heavily on an “unreliable United States.” He said Canada is unlikely to build companies on the scale of OpenAI or Anthropic, and recommended finding places in the AI supply chain where Canadian firms can add value and partnering instead of building every component. Caseway’s decision is one company’s choice, and its size and finances remain undisclosed.
Frequently Asked Questions
Why is Caseway turning away U.S. government work?
CEO Al Vigier says he is uncomfortable helping the U.S. with AI needs while it is threatening Canada, citing Trump’s repeated “51st state” comments. He told the San Francisco Standard it is an ethical and political decision that will last for the next few years.
Where is Caseway focusing instead?
Caseway is concentrating on Canadian defence and seeking opportunities in Europe and Taiwan, according to Global News. It says it will honor existing contracts.