UK government will buy tech to boost AI sector in $130M growth push

The UK government has announced a $130 million plan to boost the country's artificial intelligence sector by purchasing cutting-edge chip technology from British startups. The initiative aims to support the development of AI hardware that can be used in various sectors, including life sciences and financial services.

Under the plan, the government will offer guaranteed payments to startups producing AI hardware that meets set performance standards. This move is part of a wider AI package designed to upgrade Britain's tech infrastructure and convince entrepreneurs and investors that Labour is backing the sector ahead of next week's Budget.

The UK's AI market is valued at over $94 billion, making it the third-largest in the world after the US and China. However, investment in AI in the UK lags behind the US, with private investment in AI in 2024 reaching $109.1 billion compared to just $4.5 billion in the UK.

Science Secretary Liz Kendall acknowledged that the government's bid may seem small compared to what is being spent by other countries, but argued that it was about showing leadership in areas where Britain will be world-leading. She noted that the country has strengths in life sciences, financial services, defense, and the creative sector, and that AI can help leverage those strengths.

The plan also includes a "first customer" promise modeled on the way the government bought COVID vaccines. Under this mechanism, companies will commit to producing AI inference chips that meet set performance standards, and the government will buy them in advance. The science secretary did not provide precise details on how the mechanism would work but said that cutting-edge chip companies based in Britain would be told "the government will buy that when the technology reaches a certain standard."

The government has signed several strategic partnerships with American groups to attract foreign investment in UK AI infrastructure and talent, and has announced plans to back AI startups alongside the British Business Bank. A venture capitalist at Balderton, James Wise, will chair the government's $500 million sovereign AI unit.

Sue Daley of lobby group TechUK welcomed the plan but warned that advanced market commitments must be designed carefully to avoid distorting competition. The government's bid is seen as a step in the right direction towards upgrading Britain's tech infrastructure and convincing entrepreneurs and investors that Labour is backing the sector ahead of next week's Budget.

the uk gov has just dropped a $130 million plan to boost their ai sector, which is pretty cool they're gonna buy cutting-edge chip tech from british startups and offer guaranteed payments for startups producing ai hardware that meets certain performance standards

so, the uk's ai market is valued at over $94 billion now but still behind the us ($109.1 billion in 2024) and china the gov's bid might seem small compared to what other countries are spending, but it's more about showing leadership in areas where britain will be world-leading

the plan also includes a "first customer" promise, kinda like how they bought covid vaccines the gov will buy ai inference chips from companies that meet set performance standards and the goal is to attract foreign investment and talent into uk ai infrastructure

I think this plan is a decent starting point, but it does raise some concerns about the level of funding. $130 million might not be enough to significantly boost the AI sector in the UK, considering how much more investment is being made by other countries like the US . That being said, I do appreciate the government's willingness to show leadership and support for British startups .

The idea of guaranteed payments to meet set performance standards is a good one, but it'll be interesting to see how that plays out in practice . It's also good to hear that there are plans to attract foreign investment and talent through strategic partnerships . However, I do wish the government had provided more details on how this "first customer" promise would work .

Overall, I think this plan is a step in the right direction, but it'll be crucial to monitor its effectiveness and make adjustments as needed . It's also worth keeping an eye on how TechUK's concerns about market commitments are addressed .

So I think this plan is actually kinda interesting, you know? They're trying to boost the UK's AI sector by buying cutting-edge chip tech from British startups, which could help them compete with the US and China. It's a pretty smart move, since the UK already has strengths in life sciences, financial services, defense, and the creative sector - AI can really help leverage those. But what I'm worried about is that it might seem like a small investment compared to what other countries are putting into AI.

I mean, $130 million is definitely not chump change, but when you're talking about a country as big as the US or China, it's hard to compete with their massive investments. Plus, there's always the risk that this plan could distort competition if they're not careful. But overall, I think it's a good step in the right direction, and I'm glad to see the government taking action to support UK startups.

The "first customer" promise is also an interesting idea - basically, companies will commit to producing AI chips that meet certain standards, and the government will buy them in advance. It could be a great way to get investment flowing into the sector and help build out the UK's tech infrastructure. Just hope they can execute it well!

I'm not sure if this plan will actually do anything... it sounds like just another Band-Aid solution to a much bigger problem 130 million bucks just seems so little when you think about how much money is being sunk into AI in the US right now. And what's with the guaranteed payments for startups? Is that just going to make them all reliant on the government, or what? I mean, I'm not saying it can't help or anything, but it just seems like more government meddling to me

I'm so stoked to hear about this new initiative! $130 million for AI chip tech is a solid start . I mean, we all know the UK has some serious strengths in life sciences and financial services, and AI can totally help us leverage those areas . Plus, it's awesome that they're offering guaranteed payments to startups that meet certain performance standards - it's like a safety net for them .

And let's be real, $94 billion is still a pretty massive market value . I'm not saying this plan is going to magically close the gap with the US and China, but every little bit counts, right? It's also super cool that they're partnering up with American groups to attract foreign investment - I mean, who doesn't love a good collaboration .

I do think it's a bit worrying that we're comparing apples and oranges when it comes to investment in AI . $109 billion vs $4.5 billion is a pretty significant gap. But overall, I'm feeling pretty optimistic about this plan . It's just the beginning of what could be some amazing progress for the UK tech sector!

so they're trying to boost the AI sector now... about time, lol 130 million sounds like peanuts compared to what the US is pumping into AI every year but hey, at least the UK is trying, I guess? the problem is they think a few billion in guaranteed payments will magically make their startups go from zero to hero it's not that simple. and what's with the 'first customer' promise? sounds like they're just trying to get companies to produce some AI chips on spec

I'm actually kinda stoked about this AI plan by the UK government ! $130 million is a decent chunk of change to help British startups develop cutting-edge chip tech . It's also interesting to see them trying to create a 'first customer' promise, like with COVID vaccines . That could really give companies an incentive to invest in AI hardware . The fact that they're working with American groups and the British Business Bank to attract foreign investment is also a plus . I mean, who doesn't love some friendly competition between startups? But, I do think it's worth keeping an eye on how this plan shakes out in terms of supporting UK-based innovation .

£130m ain't much considering how much AI investment US got last year... feels like Labour's tryin' to keep up, but I reckon they should be lookin' at innovatin' instead of just playin' catch-up Still, gotta give 'em credit for tryin', and it's good to see more cash goin' into the sector

I'm so stoked about this news! The UK government is finally showing some love to its AI sector, investing £100m (that's like, a decent chunk of change) in cutting-edge chip tech from British startups . It's about time, right? I mean, the US and China are already crushing it when it comes to AI investment, so it's nice to see the UK playing catch-up.

But, you know, this plan is more than just a PR move. The government's actually committing to support the development of AI hardware that can be used in life sciences and financial services . That's some serious stuff. And, let's not forget about the "first customer" promise – it's like, a win-win for everyone involved!

I'm all about supporting the UK tech sector, and I think this plan is a good step in the right direction. It shows that the government's behind the AI sector, even if it's just a small investment compared to what others are doing . But, hey, every little bit counts, right?

I'm not sure if 130 million dollars is gonna make a huge difference for UK AI sector but it's definitely a good start . I mean, they're offering guaranteed payments to startups which can help them secure funding and create jobs. And it's great that they're supporting the development of AI hardware that can be used in life sciences and financial services - that's like, super important stuff .

But let's not forget, US is still way ahead when it comes to investing in AI, so we'll have to see how this plan plays out over time . And I'd love to know more about those strategic partnerships they've signed with American groups - can't just attract investment by waving a magic wand .

Still, all this sounds like good news for tech enthusiasts and entrepreneurs out there . Fingers crossed it leads to some innovative breakthroughs and growth for the UK AI sector