The UK government is spending £100 million in an effort to increase its market share in the AI chip industry. This effort aims to build a strong AI infrastructure in the UK that is comparable to what is happening in the US and other countries. The allocated monies will be used to buy crucial parts from leading chip producers like Nvidia, AMD, and Intel.
The Guardian asserts that when compared to the financial commitments of the EU, US, and China, the UK’s allocation of £100 million may be insufficient. According to sources, the government is about to acquire 5,000 GPUs from Nvidia, a company that has seen its stock soar despite the escalating AI battle.
The processing capacity of the chip, which is essential for carrying out sophisticated AI operations, is mostly provided by these GPUs, also known as graphics cards.
However, concerns are growing within Whitehall and in the tech industry. There is an increasing perception that the UK may be falling behind. Currently, the UK accounts for just 0.5% of worldwide semiconductor sales. A related event occurred this past May when Rishi Sunak, the government’s spokesperson, announced a ten-year commitment to invest £1 billion in semiconductor R&D. However, this amount appears little when compared to the US’s $52 billion Chips Act and the substantial €43 billion in subsidies from the EU. As a result of these changes, geopolitical tensions related to AI chip technology are rising.
Following China’s statement that chips from US firm Micron posed a security concern, the White House recently forbade US investments in sophisticated Chinese microconductors.
The UK is preparing an AI summit for this autumn to address these issues and create universal technological standards. The Department for Science, Innovation and Technology and UK Research and Innovation are leading the charge to finalise orders with significant chip makers.
An official from the government said, “We are dedicated to maintaining a thriving environment for compute in the UK which retains our position as a global leader across science, innovation, and technology. The additional funding being provided by UKRI will complement the previous £100 million investment made to create the Foundation Model Taskforce”.
In related news, the Prime Minister and the Technology Secretary announced on April 24, 2023, that a taskforce will receive an initial funding commitment of £100 million. The goal of this taskforce is to increase the UK’s proficiency in an area of AI that is quickly developing. In addition to a £900 million investment in computing technology, this allocation was made. The taskforce’s main objective is to improve the UK’s reputation in this crucial technology, focusing on the safe and reliable use of AI in a variety of industries