The UK government has announced a 100 million pound initiative to purchase emerging AI chip technology from British startups, aiming to bolster the country's artificial intelligence sector. Science Secretary Liz Kendall described the plan as a 'first customer' commitment, similar to the procurement of COVID vaccines. This move seeks to leverage UK strengths in areas like life sciences and financial services amid lagging investments compared to global leaders.
In a push to enhance the UK's position in artificial intelligence, the government will guarantee purchases of AI inference chips from domestic startups that meet specific performance criteria. This 100 million pound ($130 million) program, unveiled by Science Secretary Liz Kendall, targets hardware innovations applicable to key industries including life sciences, financial services, defense, and creative sectors.
Kendall emphasized the initiative's strategic focus, stating that while the sum 'sounds small compared to the billions being spent' by the US and China, it demonstrates 'government showing leadership in the areas where we think we will be absolutely world-leading.' She highlighted the UK's AI market, valued at over 72 billion pounds ($94 billion), as the world's third largest after the US and China.
The plan draws inspiration from the government's advance commitments for COVID vaccines and forms part of a broader AI strategy to modernize tech infrastructure. It arrives ahead of the upcoming Budget, anticipated to include tax increases on high earners, signaling Labour's commitment to the sector to attract entrepreneurs and investors. The UK has pursued partnerships with US firms like OpenAI and Anthropic to draw foreign investment in exchange for public sector adoption of their technologies.
Investment disparities persist, with 2024 US private AI funding reaching $109.1 billion versus the UK's $4.5 billion, per the Stanford AI Index. Sue Daley from TechUK praised the 'real ambition' but cautioned that such commitments 'must be designed carefully to avoid unintentionally distorting competition.'
Additionally, venture capitalist James Wise from Balderton will lead a 500 million pound sovereign AI unit, collaborating with the British Business Bank to support startups.