Latest news with #bigtech
National Post
6 hours ago
- Business
- National Post
Canada won't pause digital services tax despite pressure from U.S., finance minister says
OTTAWA — Canada won't put a hold on the digital services tax on big tech companies set to take effect on June 30, the finance minister said Thursday. Article content Article content Finance Minister Francois-Philippe Champagne said Thursday the legislation was passed by Parliament and Canada is 'going ahead' with the tax. Article content Article content 'The (digital services tax) is in force and it's going to be applied,' he told reporters before a cabinet meeting on Parliament Hill. Article content Article content It will apply retroactively, leaving U.S. companies with a $2 billion US bill due at the end of the month. A June 11 letter signed by 21 members of Congress said U.S. companies will pay 90 per cent of the revenue Canada will collect from the tax. Article content Canadian and U.S. business groups, organizations representing U.S. tech giants and American members of Congress have all signed letters in recent weeks calling for the tax to be eliminated or paused. Article content It's set to take effect just weeks before a deadline Canada and the U.S. have set for coming up with a new trade deal, following months of trade conflict between the two countries. Article content Rick Tachuk, president of the American Chamber of Commerce in Canada, said the plan to go ahead with the tax 'undercuts those talks and risks derailing the agreement.' Article content Article content 'A retroactive tax like the DST, weeks before a new deal is supposed to be done, isn't a bargaining chip. It would likely be viewed as a provocation,' he said in an emailed statement. Article content Article content The Canadian Chamber of Commerce and other organizations have warned retaliatory measures in a U.S. spending and tax bill could hit Canadians' pension funds and investments. Article content Champagne said Canada isn't the only country that could be affected by those retaliatory measures. Article content David Pierce, the Canadian Chamber of Commerce's vice-president of government relations, said in an earlier interview his organization fears Canada could 'aggravate an already very tricky trade discussion with the Americans' if it goes ahead with the tax and the retroactive payment requirement. Article content Matthew Holmes, the chamber's executive vice-president and chief of public policy, said in a statement that a Liberal government announcement on counter-tariffs to protect the steel and aluminum industries Thursday was 'geared toward the 30-day deadline, so we see no reason why DST's timeline shouldn't be as well.'
CBC
13 hours ago
- Business
- CBC
Canada won't delay digital services tax during U.S. trade negotiations, says finance minister
Canada won't put a hold on the digital services tax on big tech companies set to take effect on June 30, the finance minister said Thursday. Pressure has mounted on Ottawa to hold off while the government is in trade discussions with the U.S., which opposes the tax. Finance Minister François-Philippe Champagne said the legislation was passed by Parliament, and Canada is "going ahead" with the tax. "The [digital services tax] is in force and it's going to be applied," he told reporters before a cabinet meeting on Parliament Hill. The digital services tax will hit companies like Amazon, Google, Meta, Uber and Airbnb with a three per cent levy on revenue from Canadian users. It will apply retroactively, leaving U.S. companies with a $2-billion US bill due at the end of the month. A June 11 letter signed by 21 members of Congress said U.S. companies would pay 90 per cent of the revenue Canada collects from the tax. Canadian and U.S. business groups, organizations representing U.S. tech giants and American lawmakers have all signed letters in recent weeks calling for the tax to be eliminated or paused. It is set to take effect just weeks before a deadline Canada and the U.S. have set for coming up with a new trade deal. The Canadian Chamber of Commerce and other organizations have warned retaliatory measures in a U.S. budget bill could hit Canadians' pension funds and investments. Champagne said Canada isn't the only country that could be affected by those retaliatory measures. "These are discussions at the global level," he said in French. Champagne said there's a wider discussion going on among G7 nations about tax regimes. David Pierce, the Canadian Chamber of Commerce's vice-president of government relations, said in an earlier interview his organization fears Canada could "aggravate an already very tricky trade discussion" if it goes ahead with the tax and the retroactive payment requirement. The Liberals first promised the tax in the 2019 election, but it was delayed for years due to global efforts to establish a broader, multinational digital taxation plan.
CTV News
17 hours ago
- Business
- CTV News
Champagne says Canada won't pause digital services tax
Minister of Finance and National Revenue Francois-Philippe Champagne rises during Question Period on Parliament Hill in Ottawa, Monday, June 2, CANADIAN PRESS/Adrian Wyld OTTAWA — Finance Minister François-Philippe Champagne says Canada is going ahead with its digital services tax on big tech companies that is set to take effect on June 30. Pressure has mounted on Ottawa to put the tax on hold ahead of trade discussions with the U.S. More coming. The Canadian Press
Yahoo
17 hours ago
- Business
- Yahoo
CP NewsAlert: Champagne says Canada won't pause digital services tax
OTTAWA — Finance Minister François-Philippe Champagne says Canada is going ahead with its digital services tax on big tech companies that is set to take effect on June 30. Pressure has mounted on Ottawa to put the tax on hold ahead of trade discussions with the U.S. More coming. The Canadian Press
Forbes
5 days ago
- Business
- Forbes
3 Game-Changing AI Investment Strategies For Big Tech Investors To Save Millions
Game-Changing AI Investment Strategies In recent years, a number of high-profile AI startups—backed by leading AI investors—have faced significant setbacks, with some incurring losses in the hundreds of millions of dollars even after promising early traction and ambitious valuations. These developments serve as a cautionary signal to the global AI investment community: in a landscape defined by rapid innovation and media-fueled excitement, conventional due diligence practices are no longer sufficient. The AI sector, in particular, has become increasingly vulnerable to hype, with some startups overstating their technological capabilities—often relying on hundreds of human inputs behind the scenes while promoting their solutions as fully autonomous AI systems. As the old adage goes, "Anyone can sell snake oil, but not everyone is selling the real deal." Distinguishing genuine innovation from inflated claims is more critical than ever for investors seeking sustainable, long-term value in the AI space. For major AI investors—including big tech, institutional funds, and venture capital firms—this moment represents both a warning and an opportunity. The complexity of AI evaluation demands a strategic shift that marries visionary insight with technical rigor and collaborative diligence. The recent rise and fall of prominent startups underscores the necessity of a more disciplined, forward-looking approach—one that transitions from reactive to proactive investing. Outlined below are three forward-looking strategies designed to help investors engage more effectively with the opportunities and challenges shaping the evolving AI landscape. Strategy #1: Mitigating FOMO with Parallel Investment in Third-Party AI Expertise In a sector where the pace of innovation often outstrips investors' ability to evaluate it, a parallel investing model is becoming increasingly indispensable. This approach involves not only allocating capital to AI startups, but also systematically engaging independent AI experts and auditors to conduct ongoing, objective evaluations of a startup's core technology. While endorsements from marquee investors may signal credibility, they should never substitute for direct, evidence-based due diligence. These assessments should span critical AI disciplines such as natural language processing (NLP), machine learning operations (MLOps), model performance and product-level validation. Avoiding FOMO-Driven Decisions in AI Investing: The fear of missing out (FOMO) often drives investors to chase high-profile deals—particularly when influential names are involved—at the expense of rigorous evaluation. A disciplined, expertise-led parallel investment strategy mitigates this risk by prioritizing independent technical assessments that validate a startup's long-term potential beyond the pitch deck. A comparable model can be found in the approach of Entrepreneur First (EF), a global accelerator that pioneered 'talent investing'—backing exceptional individuals even before a team or business idea exists. By focusing on the raw potential of technical founders and guiding them through co-founder matching and company creation, EF has helped launch more than 600 startups, collectively valued at over $11 billion as of 2025. In the same spirit, the strategy proposed here advocates for investing not only in companies but also in third-party AI expertise—ensuring continued, unbiased due diligence throughout the investment lifecycle. Strategy #2: Establish a Dedicated Syndicate Investor Communication Channel While founder transparency is essential, equally important is structured, collaborative communication among investors—particularly in fast-moving sectors like AI, where innovation can outpace traditional diligence. Establishing dedicated syndicate communication channels—through regular briefings, shared due diligence, and expert panels—helps reduce information asymmetry, enable cross-validation of claims, and improve capital allocation. A coordinated framework also strengthens oversight, facilitates resource sharing, and supports early risk identification, potentially saving millions in misallocated funding. A relevant example of investors' appetite for greater transparency is the rise of Arfur Rock—an anonymous X (formerly Twitter) account dubbed the 'Gossip Girl of Silicon Valley.' The account shares insider updates on startup funding and performance metrics, gaining traction by revealing information typically shielded by NDAs or SEC regulations. Though informal, Arfur Rock underscores a broader need for visibility and information-sharing in venture capital. A private, structured communication network among syndicate investors could go even further—offering vetted, actionable insights that support more aligned, evidence-driven investment decisions. Strategy #3: Prioritize Technical Transparency and Engage Directly with AI Engineers Artificial intelligence is inherently complex and often opaque, making it difficult for non-technical investors to assess. In a hype-driven market, distinguishing genuine innovation from polished narratives requires more than pitch decks—it demands transparency around technical documentation, model performance metrics, and real-world deployment data. To truly evaluate a startup's capabilities and scalability, investors must go beyond the founders and engage directly with engineers, product teams, and early customers. A relevant example is Nvidia's ascent in the AI hardware space. Its market leadership was built on disciplined R&D investment and transparent, iterative product development. Investors who engaged closely with Nvidia's technical teams gained deep insight into its innovation pipeline—demonstrating how technical fluency and direct engagement can lead to more informed, high-conviction investments. Closing Reflections: A Mandate for Strategic Discipline in AI Investing As artificial intelligence rapidly evolves—reshaping industries and redefining competitive advantage—the imperative for disciplined, transparent investing has never been greater. In this high-stakes landscape, where promise and peril coexist, capital alone is insufficient. Big tech investors, institutional funds, family offices, and venture capital firms must meet the challenge with a deeper commitment grounded in technical fluency, collaborative intelligence, and sustained due diligence. Navigating the future of AI will require more than conviction; it demands clarity, rigor, and the discipline to see beyond the hype. Ultimately, the next era of AI will not be defined solely by those who dream the boldest, but by those who invest with discernment. In a market driven by exponential potential and persistent volatility, only disciplined capital—anchored in insight and accountability—will truly endure.
