The UK unveils billions for AI startups, compute access and a new Sovereign AI Unit, as global firms like Groq and Perplexity boost investment and job growth nationwide.
The U.K. government has announced a comprehensive package of public and private investment measures aimed at integrating artificial intelligence at the heart of its national growth strategy, promising the creation of thousands of new jobs and dedicated support for domestic technology.
The reforms, unveiled ahead of the Autumn Budget, arrive amid warnings from company executives that A.I. adoption will also lead to significant workforce reductions. The strategy, however, emphasizes bolstering British capabilities and attracting critical foreign investment in the sector.
Sovereign A.I. and Startup Support
The package details several key investment vehicles aimed at building A.I. infrastructure and fostering local innovation:
- Sovereign A.I. Unit: New details were released for the previously announced Sovereign AI Unit, which is backed by nearly £500 million in government funding. The unit, focused on building and scaling A.I. capabilities on British shores, will be chaired by James Wise of Balderton Capital.
- Hardware Support: Up to £100 million in government support is pledged to back startups focused on building A.I. hardware projects.
- Free Compute: The government will provide additional free computing power to British researchers and startups, enabling them to train new AI models and drive scientific breakthroughs.
Liz Kendall, the technology secretary, framed the measures as an economic necessity. “We are ambitious for our country… Today we’re announcing a package of measures that ensure we seize the opportunities to get jobs and growth in every part of the country,” she said.
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Foreign Investment and A.I. Zones
The announcement was bolstered by major commitments from U.S. technology firms, signaling international confidence in the U.K. as an A.I. hub:
- Groq, the A.I. inference platform, committed approximately £100 million to open its first U.K. data center in London.
- Perplexity, the A.I. search engine, plans to invest £80 million to expand its London offices.
- Cursor, an A.I. coding firm, is establishing its European headquarters in London.
In addition to private capital, the government is collaborating with Microsoft and Vantage Data Centers on a new data center campus in South Wales. The campus is backed by £10 billion of investment from Vantage Data Centers and is expected to anchor a new AI Growth Zone, which the government estimates will create more than 5,000 jobs.
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Ambassador Program
To further champion the ecosystem, the government has named a cohort of A.I. ambassadors, including high-profile figures such as Tom Blomfield (Monzo co-founder) and Raia Hadsell (Google DeepMind VP of research). These individuals will work to promote British startups and attract additional global investment.
“The backing by international investors today is a vote of confidence in the U.K.,” Ms. Kendall concluded, underscoring the government’s aim to deliver job opportunities “to the people and places that need it most.”
