TD's Layer 6 invests CAD $25 million in Cohere AI tie-up
Tue, 22nd Sep 2026 (Today)
TD Bank Group has announced an initial investment of up to CAD $25 million in a three-year strategic relationship with Cohere focused on artificial intelligence work at the bank.
The partnership will connect TD's AI research unit, Layer 6, with Canadian AI giant Cohere to explore how AI tools can improve productivity, support decision-making and reshape client interactions inside the bank.
The AI investment falls within the bank's five-year, CAD $150 billion commitment to investment, growth and innovation across key sectors.
Work under the arrangement will focus on knowledge management and practical AI uses within the bank. A dedicated Cohere team will work alongside Layer 6 at the MaRS Discovery District in Toronto.
Layer 6 has been central to TD's AI work for several years. The unit has helped shape the bank's use of machine learning, predictive analytics and other AI systems, and the latest deal builds on that internal foundation rather than replacing it.
Rizwan Khalfan, the bank's Strategic Growth, Innovation and Partnerships head, said the bank sees an opportunity to turn Canada's research strength into commercial use.
"Canada has extraordinary AI talent, research and companies. The opportunity now is to connect that strength and translate it into practical applications that create value for clients," Khalfan said.
At Nrth festival (formerly Elevate) Friday evening, Khalfan addressed the announcement, admitting that he met with Cohere founders half a decade ago and didn't really understand what their company was doing, he joked on stage with Cohere's Chief FInancial Officer François Chadwick. But added that now is the inflexion point to work together and create distinctive Canadian AI.
Cohere has positioned itself as a provider of secure AI models for businesses and governments. At TD, its role will be combined with Layer 6's understanding of the bank's operations and experience applying research to internal systems.
"We're excited to collaborate with the Bank's Layer 6 team to explore practical applications of enterprise AI that can strengthen productivity, enhance client experiences and support the responsible adoption of AI," said Chadwick.
The arrangement is also part of TD's broader support for Canada's AI ecosystem. The bank pointed to a recent $1 million donation to TechSpark's AI Lit for Entrepreneurs accelerator, aimed at underrepresented founders seeking training, tools and resources.
TD is one of North America's largest lenders by assets and serves 28.2 million clients across Canadian personal and commercial banking, U.S. banking, wealth management and insurance, and wholesale banking.
Maks Volkovs, Co-Founder and Chief AI Scientist at Layer 6, framed the partnership as a way to connect research with practical work inside the bank.
"This collaboration is an opportunity to translate AI advances into practical solutions that improve productivity, strengthen decision-making and create better experiences, while helping our clients and colleagues navigate an increasingly digital economy."