Canada's technology sector is entering a new phase of growth as the country reaches 38 privately held startups valued at more than US$1 billion, according to a newly published analysis. Their combined valuation is estimated at approximately US$97 billion.

Artificial intelligence is playing an increasingly important role in Canada's startup expansion, with investors directing significant capital toward companies developing AI-powered software, enterprise technology and other advanced digital products.

The growing number of unicorns highlights Canada's ability to produce technology companies capable of attracting international investment and competing beyond the domestic market.

For Canadian entrepreneurs, the development could strengthen access to venture capital, technology talent and global partnerships, while encouraging more startups to pursue rapid international expansion.

The country's progress also reflects the growing importance of Toronto, Vancouver, Montreal and other Canadian technology hubs in the global startup landscape.

Analysts say maintaining this momentum will depend on Canadian companies successfully commercializing advanced technologies, attracting investment and scaling into international markets.

The latest milestone gives Canada's technology sector another strong signal that AI and innovation are becoming increasingly important drivers of the country's global technology ambitions.