Microsoft Announces £22bn Investment Into UK AI
Microsoft is pouring £22bn into the UK to build AI infrastructure, including the country’s most powerful supercomputer, as part of a massive £31bn "Tech Prosperity Deal" unveiled during Donald Trump’s state visit. The deal, hailed by Prime Minister Sir Keir Starmer as a “generational step change” in US-UK relations, also includes investments from Google, Nvidia, Salesforce, and OpenAI totalling over $40bn. Microsoft President Brad Smith admitted he hadn’t “always been optimistic” about the UK’s business climate but praised recent government efforts, saying that the current environment “bodes well for substantial investments.”
The centrepiece of Microsoft’s plan is a next-generation AI supercomputer in Essex, developed with British firm Nscale, equipped with over 23,000 GPUs. Nvidia, meanwhile, announced it would deploy 120,000 of its cutting-edge chips in the UK — its largest-ever European rollout — as part of an £11bn plan. Google pledged £5bn to AI development and a new data centre in Waltham Cross, which it claims will help create over 8,000 jobs a year. OpenAI, backed by Microsoft, is rolling out “Stargate UK,” a new AI hub in Newcastle, initially powered by 8,000 GPUs and potentially expanding to 31,000.
Speaking to the BBC, Microsoft CEO Satya Nadella said he hoped AI’s impact on the UK economy would be felt within five years: “Whenever anyone gets excited about AI, I want to see it ultimately in the economic growth and the GDP growth.” However, he warned against hype, admitting AI remains “very high” in energy use and vulnerable to boom-bust cycles. Critics, like campaign group Foxglove, have voiced concerns that British taxpayers might end up covering the energy costs for the data-heavy industry.
The tech announcement comes amid political tension, with Starmer managing fallout from a cabinet reshuffle and the resignation of Deputy PM Angela Rayner. Trump, meanwhile, hinted at tweaking the existing UK-US trade deal, saying, “They want to see if they can refine the trade deal a little bit… I’m into helping them.” Despite the pomp — including a banquet at Windsor Castle — the bigger takeaway from Trump’s visit may be the unprecedented level of US tech commitment to the UK’s AI future.
