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Microsoft to Invest £2.5 Billion in Artificial Intelligence Development in the UK

Summary

Tech giant Microsoft has announced plans to invest £2.5 billion in the development of artificial intelligence (AI) infrastructure in the UK, as part of the government’s international investment package. The investment will bring more data centers and “thousands” of graphics […]

Microsoft to Invest £2.5 Billion in Artificial Intelligence Development in the UK

Tech giant Microsoft has announced plans to invest £2.5 billion in the development of artificial intelligence (AI) infrastructure in the UK, as part of the government’s international investment package.

The investment will bring more data centers and “thousands” of graphics processing units – the circuits used to power AI applications – to the UK.

This forms part of a total of £29.5 billion in capital investments in the UK by companies, which the government revealed at the Global Investment Summit at Hampton Court Palace on Monday.

Other technology investments include the Ellison Institute of Technology, which will invest £1 billion in its recently announced Oxford research and development campus.

Japanese venture capital fund SBI Investment has confirmed it will lead a £79.3 million ($100 million) capital raise for Oxford Quantum Circuits.

“Attracting global investment is at the heart of my plan to grow the economy,” said Prime Minister Rishi Sunak.

“With new investments in key industries such as clean energy, life sciences, and advanced technologies, foreign investment creates high-quality new jobs and drives growth across the country.”

Details of the timeline for Microsoft’s £2.5 billion investment are still unknown.

A Microsoft spokesperson stated that the company will provide further details about its AI investment later in the week.

“The accelerated development of AI capabilities and user demand for AI services require significant investments in UK infrastructure,” said the spokesperson.

The increasing adoption of artificial intelligence, such as the advanced chatbot ChatGPT supported by Microsoft, has driven the demand for hardware required to power and train systems.

In last week’s Autumn Statement, the government allocated an additional £500 million over the next two years for AI computing access. This will bring the total planned investment to over £1.5 billion, with AI supercomputers being built in Bristol and Cambridge.

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