UK sets out $1.5 billion AI hardware plan with supercomputer, chip funding

Britain set out a new £1.1 billion ($1.47 billion) plan on Monday to build domestic AI computing capacity, including a new national supercomputer and funding to back homegrown chip firms.

The strategy builds on a £400 million commitment announced by Prime Minister Keir Starmer at London Tech Week earlier on Monday for specialist AI chip purchases, part of a wider effort to strengthen the country's sovereign computing capability.

Below are the key details of Britain's commitment, set out by the government:

• A £750 million national AI supercomputer will deploy in 2030, using a mixed chip system combining proven and next-generation processors.

• £400 million of the supercomputer budget will go towards next-generation chips, including £150 million for inference chips to be purchased this summer from British firms.

• A fund led by U.S. venture capital firm Playground Global and backed by up to £150 million from the British Business Bank will invest in UK AI hardware companies.

• The BBB's commitment marks the largest single fund investment the bank has ever made.

• Playground Global will open its first office outside the U.S. in the UK.

• A £120 million AI hardware innovation programme will fund British companies to design, develop and test novel chips.

• £45 million in new skills support brings total government AI hardware sector skills funding to £80 million.($1 = 0.7488 pounds)

-Reporting by Paul Sandle, Sam Tabahriti and Sarah Young. Writing by Sam Tabahriti. Editing by Kate Holton and Jan Harvey/Reuters