Global AI race: UK to spend £100m to produce AI chips

The UK Government has announced it will be spending £100m to accelerate its positioning within the global race to produce computer chips that will be used to power artificial intelligence (AI).

The funds, sourced through taxpayer money, will be used to build a national AI resource in Britain and be ordered through major chipmaking companies such as Intel, AMD, and Nvidia.

Graphics processing units (GPUs)

It was also revealed that the government is already in the advanced stages of an order of up to 5,000 graphics processing units (GPUs) from Nvidia.

The GPUs, also known as graphics cards, play a crucial part in a chip’s capacity for processing: vital for performing complex actions such as those required by AI.

AI investment

The reality is that for many AI start-ups, getting the opportunity to secure a credible valuation"

Steven Mooney, CEO of FundMyPitch, said, “It’s encouraging to see a substantial investment being made in AI, at a time when the technology is set to completely reshape the way businesses operate. However, not enough is being done to support the UK’s homegrown tech talent, with far too many ambitious entrepreneurs and innovators struggling to obtain funding, despite producing industry-pioneering products."

"The reality is that for many AI start-ups, getting the opportunity to secure a credible valuation and attract the attention of investors is an almost impossible task. This needs to change immediately if we want to play a pioneering role in the AI industry.”

Semiconductor research, design, and production

An official who was briefed on the plans also added that the £100m is relatively low in comparison to investments compared by the US, EU, and China. Fears that the Government’s action may prove too little, too late are rising in both industry and Whitehall as the UK currently only accounts for around 0.5 percent of semiconductor sales globally.

In May, Rishi Sunak’s government revealed plans to invest £1bn over the next decade in semiconductor research, design, and production, but was a step dwarfed by the US’s $52bn (£41bn) Chips Act, and EU subsidies of €43bn (£37bn).

AI chip tech development

The government is set to hold an AI summit in autumn 2023 in Bletchley Park to help establish shared standards

The relatively weak investment could stunt progress and potentially leave the UK exposed amid increasing geopolitical tensions over AI chip tech development. However, Sunak’s focus on regulation has sought to view the UK as the potential bridge between US and China following the White House’s ban on US investments in advanced Chinese semiconductors earlier this month.

To further strengthen the UK’s stance on AI, the government is set to hold an AI summit in autumn 2023 in Bletchley Park to help establish shared standards and regulations.

AI Research Resource

A government spokesperson said, “We are committed to supporting a thriving environment for computing in the UK which maintains our position as a global pioneer across science, innovation, and technology."

“The additional money being delivered through UKRI will complement the separate £100m investment to establish the Foundation Model Taskforce. Announcements on the AI Research Resource will follow in due course.”