OpenText and TELUS launch Canadian Sovereign Cloud for AI workloads

Published 30/07/2025, 15:54
OpenText and TELUS launch Canadian Sovereign Cloud for AI workloads

WATERLOO, ON - OpenText (NASDAQ:OTEX), a technology giant with a market capitalization of $7.76 billion and currently identified as undervalued according to InvestingPro analysis, and TELUS (NYSE:TU) announced today the launch of their Canadian Sovereign Cloud, a platform designed to keep all cloud computing and AI operations within Canadian borders.

The new offering, which will be available starting September 2025, aims to provide enterprise-grade cloud computing and AI capabilities to Canadian organizations and government agencies while ensuring complete data sovereignty. OpenText brings substantial financial strength to this partnership, maintaining impressive gross profit margins of 75.94% and generating annual revenue of $5.22 billion.

The platform will operate entirely within TELUS’ Canadian data centers, including facilities in Rimouski, Quebec, and Kamloops, British Columbia. It will deliver AI computing capabilities in a secure environment that complies with Canadian security standards and privacy regulations.

"OpenText is excited to partner with TELUS to deliver these strategic capabilities for Canadian customers," said Mark J. Barrenechea, OpenText CEO & CTO, according to the press release.

The Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation, called the partnership an example of "the kind of vision and leadership Canada needs right now" to advance the country’s technology sector.

As part of the offering, OpenText’s Aviator AI products will leverage TELUS’ AI Factory to offer a sovereign configuration hosted entirely in Canada. This will allow customers to use AI-enabled search and summarization while keeping data secure within Canadian borders.

Both companies are early signatories of the Government of Canada’s voluntary AI code of conduct and have experience serving Canadian governments, businesses, and institutions.

The announcement represents the companies’ commitment to Canadian innovation, providing a solution that combines cloud capabilities with sovereign assurance.

Currently, OpenText serves 1,600 Canadian institutions, with nearly a thousand organizations actively using AI-powered applications in the cloud, according to the company’s statement. For investors interested in deep insights into OpenText’s AI initiatives and financial performance, InvestingPro offers comprehensive analysis including 10 additional ProTips and detailed metrics in its Pro Research Report, part of its coverage of over 1,400 top US-listed companies.

In other recent news, OpenText has announced the launch of its AI-powered Cloud Editions 25.3, designed to enhance enterprise capabilities with artificial intelligence, cloud services, and cybersecurity features. The release includes tools like MyAviator, a secure personal assistant, and DevOps Aviator, which integrates with GitHub Copilot for software development. Additionally, OpenText has been selected by Europcar Mobility Group to manage its global electronic invoicing needs, ensuring compliance across 130 countries. The company also revealed enhancements to its Private Cloud offerings to address data sovereignty and regulatory compliance, with data centers in multiple countries including Canada and Germany.

OpenText plans to participate in Black Hat USA 2025, showcasing its AI-driven cybersecurity solutions. The demonstrations will focus on threat detection, application security testing, and identity management. In leadership news, Chief Financial Officer Chadwick Westlake will step down to become President and CEO at EQB, his former employer. OpenText is currently searching for a new CFO to succeed Westlake after his departure on August 15, 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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