LONDON, UK – The British government has announced a £1 billion ($1.36 billion) investment to expand the nation’s AI computing capacity by a factor of 20, marking a significant step toward strengthening sovereign AI capabilities and accelerating digital transformation.
A Game-Changer for AI Development
Speaking at London Tech Week, Prime Minister Keir Starmer described the initiative as a “real game-changer”, emphasizing the urgency of building more labs and data centers to support AI-driven innovation.
“We are going to build more labs, more data centers – and we’re going to do it much, much more quickly,” Starmer stated.
The investment aligns with the Planning and Infrastructure Bill, currently under Parliamentary review, which aims to streamline AI infrastructure development and position the UK as a global AI leader.
Public-Private Collaboration: The UK Sovereign AI Industry Forum
The initiative is part of a broader “Plan for Change”, designed to enhance AI research, support startups, and equip millions with digital skills.
At the event, NVIDIA CEO Jensen Huang joined Starmer to announce the formation of the UK Sovereign AI Industry Forum, a public-private partnership involving major British companies such as Babcock, BAE Systems, BT, National Grid, and Standard Chartered.
Huang described the UK as a “Goldilocks circumstance” for AI development, stating:
“You can’t do machine learning without a machine — and so the ability to build AI supercomputers here in the UK will naturally attract more startups.”
Expanding AI Compute Power
As part of the initiative:
- NVIDIA will supply cloud provider Nscale with 10,000 Blackwell GPUs by 2026.
- Nebius will deploy 4,000 additional GPUs, supporting AI research, startups, and public services, including the NHS.
- The Department for Science, Innovation and Technology (DSIT) has partnered with NVIDIA to advance AI-native wireless networks, benefiting universities and telecom innovation.
Investing in AI Talent and Workforce Development
The UK government is also committing £187 million ($253 million) to the TechFirst programme, which aims to:
- Train up to 7.5 million workers in AI by 2030.
- Provide foundational AI education to one million secondary school students.
- Expand online AI training platforms, which already have 100,000 student registrations.
Starmer emphasized the importance of equipping the next generation with AI skills, stating:
“This programme puts AI into the hands of the next generation so they can shape the future, not be shaped by it.”
Industry Leaders Welcome the Initiative
Sheila Flavell, COO of FDM Group, praised the government’s focus on skills development, highlighting the role of apprenticeships in sustaining AI growth.
NVIDIA’s Huang reinforced the importance of AI talent, stating:
“AI developers power the next industrial revolution. AI talent, skills, and research are crucial ingredients in the UK’s mission to become an AI maker, not an AI taker.”
Conclusion
The £1 billion AI investment signals the UK’s commitment to AI leadership, fostering innovation, infrastructure growth, and workforce development. As the UK Sovereign AI Industry Forum takes shape, the country is poised to compete globally in AI-driven industries.
