A landmark £1.1 billion plan to boost Britain’s ability to develop, deploy and scale Artificial Intelligence technologies and chips has been unveiled, pouring investment into the next generation of British chip companies to support growth and jobs, strengthen national security and boost the UK’s competitiveness. The new Artificial Intelligence Hardware Plan, announced by Technology Secretary Liz Kendall at London Tech Week, sets out how the government will back British companies developing the chips and semiconductor technologies behind Artificial Intelligence, while also investing in the scientists, engineers and technicians needed to turn new ideas into products and jobs in the UK.
The plan includes new £750 million for a national Artificial Intelligence supercomputer, described as one of the most advanced in the world when deployed in 2030. Of the £750 million, £400 million will go towards equipping the UK’s Artificial Intelligence supercomputer with next-generation chips. £150 million of this will be used to buy next-generation inference chips this summer, creating an immediate opportunity for British firms, while a further £250 million will support the purchase of more specialised chips as the most promising technologies mature. The government said British-designed chips could form a crucial part of the system, which will support researchers, startups and public services with secure computing power in Britain.
£120 million will fund a new Artificial Intelligence Hardware Innovation Programme to help British companies design, develop and test novel chips. At least £20 million of the programme will expand the Scaling Inference Lab, delivered by ARIA and CommonAI, to help companies prove their technology, attract investment and secure partnerships with global tech firms. Oriole Networks, working with AMD through the Lab, will deploy the world’s first large-scale Artificial Intelligence system that uses light rather than electrical signals to move data between chips, boosting the performance of UK data centres.
The skills component includes £45 million in new support for doctoral training and undergraduate bursaries, bringing government support for the industry’s skills needs to £80 million. A new UK fund led by Silicon Valley investors Playground Global and backed by up to £150m from the British Business Bank will invest in UK-based Artificial Intelligence hardware companies, subject to completion of due diligence and legal negotiations. The plan also points to wider measures, including a £12 million Centre for Doctoral Training in Chip Design, a £20 million expansion of TechFirst, and a £18 million Hardware Security R&D Programme.
