The UK government has unveiled a plan to invigorate the artificial intelligence sector by investing 100 million pounds ($130 million) to procure cutting-edge chip technology from British startups. This initiative aims to foster growth and innovation within the AI hardware space, particularly in industries like life sciences and financial services.
Science Secretary Liz Kendall announced that the government will provide guaranteed payments to British companies developing AI hardware that align with specified performance criteria. Drawing inspiration from the procurement model used for COVID vaccines, Kendall’s department will act as the ‘first customer,’ committing in advance to acquiring AI inference chips that meet designated standards.
Despite the seemingly modest sum compared to the investments made by the US and China, Kendall emphasized the government’s intention to demonstrate leadership in areas where the UK can excel. With the UK’s AI market valued at over 72 billion pounds ($94 billion) and ranking as the world’s third-largest after the US and China, this initiative seeks to bridge the investment gap between the UK and the US, where private AI investments significantly exceed those in the UK.
While specific details on the operational aspects of the ‘advance payment mechanism’ were not provided, Kendall highlighted that British chip companies developing state-of-the-art technology will receive assurances that the government will procure their products upon meeting defined standards.
Source: Ars Technica