The government acting as a “first customer” for UK start-ups building AI hardware products, a new AI growth zone in South Wales and Monzo co-founder Tom Blomfield becoming an AI ambassador with a focus on small businesses are among several announcements from the government today.
The AI growth zone in South Wales is the fourth to be unveiled so far. First announced by prime minister Keir Starmer in January, the AI growth zones are described as focused on “speeding up planning permission and give them the energy connections they need to power up AI”. They will also get £5 million of government funding each to boost business adoption of AI and invest in the skills of local workers.
The Department for Science, Innovation and Technology (DSIT) says the new South Wales zone will create more than 5,000 new jobs including at the former Ford Bridgend Engine Plant.
The other AI growth zones announced to date are in North Wales, North East and Oxfordshire.
Also announced today are new AI ambassadors to “help maximise the benefits of AI for Britain”. They are:
- Monzo co-founder and Y Combinator general partner Tom Blomfield who will champion British start-ups to scale and attract talent and investment.
- Nobel prize winning British Massachusetts Institute of Technology economist and former chief economist of the International Monetary Fund Simon Johnson who will focus on helping public services and businesses to use AI to boost productivity.
- Google DeepMind’s Raia Hadsell who will “champion the UK’s place at the forefront of AI innovation and security”.
In addition, the government will act as a “first customer” for UK start-ups building high-quality AI hardware products but currently struggle to get off the ground without investment. It includes up to £100 million of government support for start-ups.
Alongside this, venture capitalist James Wise will chair the Sovereign AI Unit, with almost £500 million in investment to help build and scale AI capabilities in the UK. The unit will bring together government, industry and investors, to “become the go-to fund for high potential start-ups and scale-ups in the UK”.
Another announcement is a new AI for science strategy which involves up to £137 million in government funding. Its first focused will be on using harnessing AI to speed up the research of new drugs and treatments.
Major companies have also made AI-related announcements, including:
- American AI inference platform Groq will be opening its first UK data centre in London.
- Graphcore and SoftBank will open a new AI development lab in Bristol, increasing their headcount to 750 jobs.
- San Francisco company Perplexity AI is investing £80 million to expand offices in London, creating 100 jobs.
- Cursor is opening its London office as its European headquarters, the company’s first international expansion.
Science and technology secretary Liz Kendall said:
“We are ambitious for our country and believe Britain’s best days lie ahead. Today we’re announcing a package of measures that ensure we seize the opportunities to get jobs and growth in every part of the country.
“The backing by international investors today is a vote of confidence in the UK – and we’re determined to do even more to ensure we are backing British businesses, workers and researchers to benefit from the opportunities AI brings. This is about bringing jobs, opportunities and hope to the people and places that need it most, delivering on our promise of change.”
Welsh secretary Jo Stevens said:
“Wales will now have two brand-new AI growth zones bringing thousands of jobs to both North and South Wales and driving economic growth across the country.
“South Wales is already the home of a growing tech industry and this major investment in the region will help cement the UK’s place as a global leader in AI.”