UK Provides £1.3 Billion Funding for AI Business Startups

19 Aug, 2024

UK Provides £1.3 Billion Funding for AI Business Startups

The newly elected UK Labour government has withdrawn £1.3 billion in funding for technology and artificial intelligence (AI) projects previously allocated by the Conservative administration. This move could disrupt the development of the UK’s first exascale supercomputer, currently being built at the University of Edinburgh. The funding, which included £800 million for the supercomputer and £500 million for the AI Research Resource, was deemed by Labour as unfunded commitments not included in previous spending plans.

The Department for Science, Innovation, and Technology cites economic stability and national growth as reasons for the withdrawal. Despite £300 million already being paid out for AI research, the tech industry has expressed significant concern over the remaining funds being pulled. Shadow Science Secretary Andrew Griffith criticized the decision, arguing it undermines the UK's research ambitions and modern economy.

The planned exascale supercomputer, expected to be 50 times faster than any current UK machine, was set to revolutionize research in fields such as AI, climate change, and advanced engineering. The University of Edinburgh, which has already invested £31 million in the project's infrastructure, seeks urgent discussions on the future of the supercomputer.

The government maintains its commitment to supporting technology infrastructure to drive growth and opportunities, with Science Secretary Peter Kyle emphasizing AI’s role in economic development. However, the funding cuts cast doubt on the UK's ability to maintain technological leadership and prompt calls for a reassessment of the funding strategy.