Boost for UK AI as Microsoft unveils £2.5 billion investment

The Chancellor today praised Microsoft's significant investment in AI infrastructure and skills as critical to future growth and innovation, propelling the country as a scientific and technological superpower.

Microsoft is committed to more than doubling its data center presence in the UK and training more than a million people for the AI ​​economy. It also supports growing AI research and security efforts in the UK through partnerships with the government and leading universities.

As part of this, Microsoft will spend £2.5 billion over the next three years to expand its next-generation AI data center infrastructure, incorporating more than 20,000 of the most advanced graphics processing units (GPUs), which are crucial for machine learning and AI Model development: to the UK in 2026.

This is the largest investment in its 40-year history in the country, which will see Microsoft expand its UK AI infrastructure at sites in London and Cardiff and a potential expansion into the north of England, helping to meet growing demand. demand for efficient, scalable and sustainable AI. specific computing power. Data centers process, host and store massive amounts of digital information that is essential for developing AI models.

This £2.5 billion commitment was confirmed on Monday when Prime Minister Rishi Sunak unveiled £29.5 billion of investment in our most innovative sectors, including technology, life sciences, renewable energy, housing and infrastructure in the World Investment Summit.

The UK is already the leading European tech ecosystem, worth more than double that of Germany and three times that of France last year. The UK AI sector also contributes £3.7 billion to the UK economy and employs 50,000 people across the country.

The Chancellor welcomed Microsoft's investment on a visit to one of its new next-generation data centers under construction in north London, which will run entirely on renewable energy, where he was accompanied by Microsoft vice president and president Brad Smith, and the CEO of Microsoft in the United Kingdom. Clara Barclay.

Prime Minister Rishi Sunak said:

“Microsoft is one of the founding fathers of modern technology and today's announcement is a turning point for the future of AI infrastructure and development in the UK.

“The UK kicked off the global conversation on AI earlier this month, and Microsoft's historic investment is further evidence of the leadership role we continue to play in expanding the frontiers of AI to harness its economic and scientific benefits.” .

Chancellor of the Exchequer Jeremy Hunt said:

“The UK is Europe's technology hub with an ecosystem worth more than Germany and France combined, and this investment is another vote of confidence in us as a scientific superpower.

“And it follows the £500 million investment in Computing I committed to in my Autumn Statement last week, taking our investment in advanced computing for AI to £1.5 billion, a down payment on the jobs and economic growth that will bring to the UK. "

Secretary of State for Science, Innovation and Technology, Michelle Donelan, said:

“This is a huge vote of confidence in the strength of the UK technology sector, showing Microsoft's support for the UK to reach superpower heights and cement our global leadership in AI security.

“This investment not only strengthens critical infrastructure but also ensures the UK remains at the forefront of driving economic growth and innovation.”

Microsoft vice president and president Brad Smith said:

“Microsoft is committed as a company to ensuring that the UK as a country has world-leading AI infrastructure, easy access to the skills people need, and extensive security protections.”

Microsoft UK CEO Clare Barclay said:

“The pace of change in AI demands action today to build a prosperous future for the UK tomorrow. Today the largest investment is made in our more than 40 years of history in the United Kingdom.

"As businesses and the public sector seize the AI ​​opportunity, we are building the infrastructure that will support the growth they need, training the people who can deliver it responsibly, and protecting our society against emerging threats."

To support AI research, Microsoft will expand its Accelerating Foundation Models Research (AFMR) program to include priority access to GPUs for the UK research and scientific community. AFMR drives interdisciplinary research on AI alignment and safety, beneficial applications of AI, and AI-driven scientific discoveries in the natural and biological sciences. This new UK effort will aim to harness the power of AI to accelerate scientific discovery through the generation of multi-modal data at multiple scales using priority access to Microsoft AI tools. This program includes researchers from leading UK participating universities including Cambridge, Oxford, Imperial College, UCL, Bath and Nottingham.

To support UK workers across the AI ​​economy, Microsoft will make a multi-million pound investment to train one million people with the skills they need to develop and work with AI, including expanded training for people looking to start or start a career. in AI.

Working in partnership with multiple learning and nonprofit partners, the program will focus on developing AI fluency, developing technical AI skills, supporting AI business transformation, and promoting the safe and responsible development and use of AI. AI, including the first Professional Certificate in Generative AI.

Today's news comes as the government agreed a new Online Fraud Charter with technology companies including Microsoft – the first deal of its kind in the world – to clamp down on fraud taking place on their platforms.

Under the agreement, the platforms will verify new advertisers and quickly remove fraudulent content. People selling items on peer-to-peer platforms like Facebook Marketplace will also be verified, and there will also be a feature for people using online dating services to confirm who they are.

Today's announcement also comes as the Chancellor announced a further £500m investment in advanced computing for AI in the Autumn Statement, bringing the government's total planned public investment in computing to more than £1.5bn millions.

These investments will help provide the UK with the infrastructure we need to create a world-leading AI ecosystem where our scientists and researchers continue to make extraordinary new discoveries, benefiting all of society and making the UK the best place in the world to start. . and grow an AI startup.

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