This program is currently between intakes. Check the official program page for reopening dates.
Updated March 2026 · Verified against Innovation, Science and Economic Development Canada (ISED) guidelines
✨ New Program Reimbursement
Grant Federal Between Intakes

AI Compute Access Fund (ACAF)

Innovation, Science and Economic Development Canada (ISED)
Maximum Funding
$100,000 to $5,000,000 per company
First call closed July 31, 2025; future calls expected
Visit Official Program →
Difficulty
Moderate
Payment
Reimbursement
Trend
New Program
First-Timers
Co-Funding
67%
AI Compute Access Fund (ACAF) provides up to $100,000 to $5,000,000 per company. Federal grant of $100,000 to $5,000,000 per company covering up to two-thirds of eligible Canadian cloud compute costs and up to half of approved non-Canadian compute costs for AI development. The program covers up to 67% of eligible costs. First call closed July 31, 2025; future calls expected.
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Eligibility & Details

What this program funds and who can apply

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Program Description

Federal grant of $100,000 to $5,000,000 per company covering up to two-thirds of eligible Canadian cloud compute costs and up to half of approved non-Canadian compute costs for AI development. Part of Canada's Sovereign AI Compute Strategy with a $300 million total envelope. Targets Canadian-registered for-profit SMEs with fewer than 500 FTEs developing AI products and solutions.

Eligibility Requirements

  • Canadian-registered for-profit SME with fewer than 500 full-time equivalents
  • Revenue-generating or minimum Series A financing
  • R&D teams based in Canada
  • Developing AI products or solutions
  • Must use compute costs on eligible Canadian or approved non-Canadian platforms
Provinces
Industries
Business Stage
Startup Growth Expansion

Quick Assessment

Difficulty
Moderate
Competition
High
First-Timer
Not rated

Funding Details

Amount
$100,000 to $5,000,000 per company
Type
Grant
Level
Federal
Co-Funding
Up to 67% of eligible costs
Deadline
First call closed July 31, 2025; future calls expected

Program Scorecard

Competition, effort, and approval at a glance

Hybrid
Competition
High
Effort
Varies
Approval
Good
Accessibility
--/5
Competition
--/5
Approval Rate
--%
Premium Know if this program is worth your 40 hours — before you start the application.
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Consultants charge $500–$2,000 per program. This Playbook is $19.
What's in this Playbook

Everything you need to win ACAF — $19

Not a marketing summary. The actual checklist, intel, and stack strategy reviewers look for.

Consultants charge $2,000–$5,000 per program. This Playbook is $19. Yours forever.

Applying for ACAF? Our Grant Proposal Template ($19) mirrors the section structure Canadian reviewers actually score on. Or get all 4 templates in the Founder Pack ($59 · saves $27) →

How to Win

Insider tips, common pitfalls, and what successful applicants look like

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Insider Tip

Covers up to two-thirds of eligible Canadian cloud compute costs and half of non-Canadian compute — this addresses the #1 cost bottleneck for AI startups. The first call was heavily oversubscribed. Future rounds are expected — prepare your application now. Revenue-generating companies or those with Series A+ financing get priority.

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Success Profile

A Montreal AI startup with 25 employees training large language models, receiving $1.5M to cover compute costs on Canadian cloud infrastructure over 18 months.

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Don’t waste your hours on a preventable rejection
Common rejection pitfalls, what winners look like, and exactly what reviewers score on
Paid grant writers quote $2,000–$5,000 per program. Start with the $19 Playbook first.

Application Playbook

Step-by-step process, required documents, and expenses

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Application Steps

1 Create a 'My Canada Business Account' and verify identity Register for a My Canada Business Account through the ISED online portal and complete identity verification. This account is required to submit the Statement of Interest and, if advanced, the full application.
2 Submit a Statement of Interest (SOI) Provide business information, eligibility confirmation, project proposal overview, industry sector, estimated compute costs, and contact details. ISED responds within 5 business days indicating whether to proceed to a full application.
3 Submit Full Application during a Call for Proposals window Only SOI-approved applicants may submit during designated Call for Proposals (CFP) periods. The application requires: project scope and objectives, detailed compute budget, commercialization plan, team credentials, financial statements, IP strategy, and projected economic benefits.
4 ISED review and funding decision ISED aims to make funding decisions within 60–90 business days after a CFP period closes. Eligible compute costs must fall between $100,000 and $5,000,000 over up to three years. Canadian cloud providers are subsidized at two-thirds; non-Canadian providers at one-half.
5 Sign Contribution Agreement and begin claiming costs Successful applicants sign a Contribution Agreement. Only costs incurred after signing are eligible. Recipients submit claims after incurring and paying eligible expenditures, and participate in regular progress monitoring and final reporting.

Required Documents 6

ACAF application form via ISED portal
Business incorporation documents (Canadian registration)
Financial statements (revenue or Series A proof)
Detailed compute budget and AI project plan
Letters of support from compute providers
Team composition showing Canada-based R&D

Eligible Expenses 7

  • Cloud compute costs for AI model training
  • Cloud compute costs for AI model inference
  • Cloud compute costs for model fine-tuning and refinement
  • Storage costs directly associated with compute activities
  • Compute-specific software licensing costs
  • Operational monitoring costs for compute infrastructure
  • Compute-specific security requirements costs

Ineligible Expenses 7

  • Federal and provincial goods and services taxes (GST/HST)
  • Pre-payments for services beyond the contribution agreement duration
  • Interest charges, late fees, fines, and penalties
  • Support or service plan costs
  • Data transfer fees
  • Legal fees
  • Costs incurred before signing the Contribution Agreement

Deadline Notes

First call for proposals closed July 31, 2025 and was heavily oversubscribed. Future intake rounds are expected — prepare your application now to be ready. Check ISED website for upcoming call announcements.

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Funding Stack Strategy

Compatible programs, clawback risk, and combined funding potential

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Compatible Programs

NRC-IRAP NRC-IRAP AI Assist SR&ED Tax Credits Scale AI Programs Google for Startups Cloud Credits
Combined Funding Potential See your total funding potential

Clawback Risk

Medium Risk

Conditionally repayable contributions require repayment if commercialization or IP milestones are not met. Repayable contributions require repayment on a schedule outlined in the contribution agreement. Even non-repayable contributions have consequences for unmet agreement terms (not publicly detailed). The conditionally repayable structure is the primary risk — if your company fails to commercialize or register Canadian IP, the grant effectively becomes a loan.

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Stack this with 5 compatible programs to multiply your funding
Stacking amounts, clawback details, government stacking limits, and tax implications
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How ACAF Compares

Side-by-side with similar programs

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Program Amount Difficulty Payment Deadline
AI Compute Access Fund (ACAF) $100,000 to $5,000,000 per company Moderate Reimbursement First call closed July...
Strategic Response Fund (formerly Str... Up to $50 million Hard Mixed (Advance + Reimb.) Ongoing — continuous...
CanExport SMEs Up to $50,000 Moderate Mixed (Advance + Reimb.) Next deadline: May 29,...
Innovative Solutions Canada up to $150,000 Hard Milestone-Based Challenge-specific — new...
Ocean Supercluster Up to $5 million Hard Reimbursement Call-specific — no open...

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Frequently Asked Questions

Quick answers to the questions founders most often ask about ACAF

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Can sole proprietors apply for ACAF?
No — must be a Canadian-registered for-profit corporation with fewer than 500 FTEs. Sole proprietors don't qualify as 'corporations' under eligibility.
What's the realistic award size for a typical AI startup?
$200,000–$2,000,000 covers up to two-thirds of eligible Canadian cloud compute costs. First call was oversubscribed — expect competitive funding.
Do I need to pay upfront for compute costs?
Yes — ACAF is reimbursement-based. You pay cloud costs first, then submit receipts for reimbursement after approval.
Why did my application get rejected?
Common reasons: 500+ FTEs, no revenue/pre-Series A, R&D team not Canada-based, or compute costs not on eligible platforms.
Can I stack ACAF with other grants?
Yes — compatible with NRC-IRAP, SR&ED, and private cloud credits like Google for Startups. Not compatible with other compute-specific grants.

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