US Tech Giants Invest Billions in UK AI Race
▼ Summary
– Microsoft and Nvidia plan to invest up to $45 billion in the UK economy, focusing on AI data centers and research.
– Microsoft will invest $30 billion in AI infrastructure over four years, its largest UK commitment to date.
– Nvidia pledges up to $15 billion for AI-related R&D in the UK, working through partners rather than direct infrastructure building.
– A joint venture called Stargate UK between Nvidia, Nscale, and OpenAI aims to strengthen UK compute capabilities, with OpenAI providing thousands of GPUs.
– Microsoft’s leadership stated the investment was not requested by the Trump administration and resulted from months of UK government discussions.
A massive wave of investment is set to transform the United Kingdom’s artificial intelligence landscape, with Microsoft and Nvidia committing up to $45 billion to boost infrastructure and research. This financial injection arrives as U.S. President Donald Trump visits Britain, where he and Prime Minister Keir Starmer are anticipated to formalize a major bilateral technology agreement.
Microsoft has pledged an extraordinary $30 billion toward AI infrastructure over the next four years, marking the company’s largest-ever financial commitment in the UK. Brad Smith, Microsoft’s vice chair and president, emphasized the tangible nature of the investment, stating, “We are focused on British pounds, not empty tech promises.” He confirmed that half the funds will support capital expansion, while the remainder will fuel partnerships, including one with data center operator Nscale.
Nvidia is contributing up to $15 billion, though its approach differs. Rather than building infrastructure directly, the chipmaker will channel investments through partners CoreWeave and Nscale into AI-related research and development. This forms part of a broader collaboration unveiled alongside the presidential visit.
A significant development is the launch of Stargate UK, a joint venture involving Nvidia, Nscale, and OpenAI. Designed to enhance the UK’s sovereign computing capabilities, the initiative will enable OpenAI’s advanced AI models to operate on local infrastructure. OpenAI has committed to supplying 8,000 GPUs by early 2026, with potential expansion to 31,000. Nscale will correspondingly increase its capacity at multiple UK sites, including a newly established AI Growth Zone in Newcastle’s Cobalt Park.
Josh Payne, CEO of Nscale, described the investment as historic, stressing that world-class AI infrastructure is essential for maintaining global competitiveness. When questioned about Microsoft’s role in the partnership, Smith succinctly noted, “we write the check, and they spend the money.”
Despite the timing coinciding with President Trump’s visit, Smith clarified that the investment was not prompted by the U.S. administration. Instead, it resulted from months of discussions with UK government officials, including those at Downing Street.
(Source: Wired)
