The UK government has unveiled a comprehensive plan, placing significant emphasis on investments in artificial intelligence to realize a “decade of national renewal.”
Dubbed the “Plan for Change,” it involves investments in neural network development to boost government-sector efficiency, the creation of AI “growth zones,” and support for critical infrastructure projects, including data centers and R&D clusters.
Private firms have reportedly pledged $17 billion and 13,250 new jobs to implement the announced program.
Key Details
- Calham designated as the first AI growth zone.
- A 20-fold increase in state-owned computing resources and work on a national supercomputer.
- Creation of a new National Data Library to store and utilize public information for AI development.
- Establishment of an Energy Council to examine power consumption by neural networks.
The plan draws from 50 recommendations by venture capitalist Matt Clifford, who has advised both the current and previous administrations.
“Artificial intelligence will drive incredible change in our country. But the industry needs a government that’s on its side—one that isn’t just standing still, letting opportunities slip away. In a fiercely competitive world, we can’t afford to sit on the sidelines. We need to act swiftly and decisively to win the global race. Our plan will make the UK a world leader,” Prime Minister Keir Starmer said.
Officials believe the plan could grow the nation’s economy by £47 billion (~$57.36 billion) over the next decade.
According to Stanford University’s AI Index, the UK ranks third worldwide in AI development, behind only the United States and China.
Expert Reactions
The investment community broadly supports the move, albeit with caveats.
“While we welcome this initiative, it’s a marathon, not a sprint. Ongoing changes and adjustments will be needed to drive adoption and help organizations,” said Simon Murdoch, managing partner at Episode 1 Ventures.
Andrew Scott, head of 7percent Ventures, highlighted the importance of seamless coordination among government agencies:
“This plan won’t succeed unless other policymakers align their actions with the government […]”
Luke Alvarez, general partner and managing director of Hiro Capital, expressed skepticism about the government’s ability to fulfill its AI commitments, pointing to inconsistencies with the administration’s current policies.
However, tech giants Microsoft, Anthropic, and OpenAI have welcomed the plan.
Building an OpenAI Competitor
The UK aims to harness AI growth zones and its National Data Library to develop sovereign models independent of Silicon Valley. Progress has been hampered by a lack of funding; venture investors have suggested that pension funds increase allocations to high-potential, high-risk startups. With £5.7 trillion ($7 trillion) at their disposal, redirecting 5% of that sum would address financing gaps, noted Antler CEO Magnus Grimeland.
Initial Steps
Cloud-computing firm CoreWeave is launching its first data centers outside the U.S., selecting the UK as the location.
In May 2024, the company opened a European headquarters in London, unveiling plans for two data centers in the country. The first one went live in October, and the second in December—both use Nvidia’s specialized AI processors.
Context
- In June, mining firm Core Scientific signed a 12-year contract with CoreWeave to provide infrastructure with 200 MW of power capacity for Nvidia GPUs.