Technology

UK government will buy tech to boost AI sector in $130M growth push

Source

Ars Technica

Published

Nov 24, 2025

TL;DR

AI Generated

The UK government plans to invest $130 million in purchasing emerging chip technology from British companies to support the growth of the artificial intelligence sector. Science Secretary Liz Kendall announced guaranteed payments to startups producing AI hardware for industries like life sciences and financial services. The government will commit to buying AI inference chips meeting performance standards through a "first customer" promise, similar to the approach taken with COVID vaccines. Despite the UK's AI market being the third largest globally, private investment in AI significantly lags behind the US, with the UK investing $4.5 billion compared to the US's $109.1 billion in 2024. The initiative aims to demonstrate government leadership in areas where the UK can excel and support local chip companies in reaching specified technological standards.

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