UK shelves £1.3 billion funding for businesses and startups working on AI projects

The UK Labour government has decided to withdraw £1.3 billion in funding previously promised by the Conservatives for technology and artificial intelligence (AI) projects. This decision casts uncertainty over the development of the UK’s first next-generation supercomputer, an exascale supercomputer at the University of Edinburgh, which was part of these plans.

The now-shelved funding package included £800 million for the exascale supercomputer and £500 million for the AI Research Resource, which was intended to support computing power for AI initiatives. The Labour government justified the withdrawal by labelling these as “unfunded commitments” that were not accounted for in the previous government’s spending plans. According to the Department for Science, Innovation, and Technology, this decision is part of broader measures to restore economic stability and achieve national growth.

Impact on the tech sector and research
Despite approximately £300 million already being distributed for the AI Research Resource, the withdrawal of the remaining funds has caused concern within the tech sector. Shadow Science Secretary Andrew Griffith criticized the move, suggesting that it signals potential future cuts under the Labour government. He emphasized that the decision could harm the UK’s ambition to increase research spending, which is crucial for fostering a modern economy.

Griffith highlighted that ministers had been informed of likely underspending within the department’s budget when the election was called, suggesting that the funding could have been maintained. This decision raises alarms about potential impacts on university research funding as well.

Uncertain future of Edinburgh Supercomputer
The University of Edinburgh had planned to host the UK’s first exascale supercomputer, capable of performing one billion billion calculations per second, which is 50 times faster than any existing machine in the UK. The university, which already hosts the national supercomputer Archer2, had spent £31 million on infrastructure to house the exascale system. The supercomputer was expected to aid research in various fields, including AI, drug discovery, climate change, astrophysics, and advanced engineering.

Professor Sir Peter Mathieson, the principal and vice-chancellor of the University of Edinburgh, is seeking an urgent meeting with the science secretary to discuss the project’s future.

UK government’s commitment to AI
Despite the funding cuts, the government maintains that it is committed to enhancing technology infrastructure to drive growth and opportunities across the UK. Science Secretary Peter Kyle recently stated that AI remains at the core of the government’s agenda for boosting economic growth and improving public services. He appointed tech entrepreneur Matt Clifford to devise an action plan for leveraging new AI opportunities, focusing on the necessary infrastructure, talent, and data access to promote AI adoption in both public and private sectors.

However, the withdrawal of significant funding casts a shadow over these ambitions and raises questions about the government’s ability to support and sustain major technological advancements in the UK.