UK launches £1.1bn plan for AI chips and supercomputer

The UK government announced a £1.1 billion AI Hardware Plan at London Tech Week to back domestic chip firms and expand national computing capacity. Technology Secretary Liz Kendall unveiled the funding package and outlined its main allocations.

The plan assigns £750 million to build a national AI supercomputer targeted for deployment in 2030. The machine will use a heterogeneous, mixed‑chip architecture that combines established processors with next‑generation designs and will form part of the UK’s AI Research Resource for universities, startups and public services. The government said it wants British‑designed chips to be used in the system and set aside £400 million for next‑generation AI chips, including a £150 million advanced purchase commitment to buy novel chips from UK firms and startups.

Downing Street confirmed the £400 million for chips is split between £150 million for next‑generation inference chips and £250 million for more specialised processors. An additional £120 million will establish an AI Hardware Innovation Programme to help British companies design, develop and test new chips. At least £20 million will expand the Scaling Inference Lab, delivered by ARIA and CommonAI, to help firms prove technology and attract private investment.

The package includes £45 million for skills training, covering doctoral programmes and undergraduate bursaries to train engineers, chip designers and technicians. A new venture fund led by Silicon Valley investor Playground Global will receive backing of up to £150 million from the British Business Bank to invest in UK‑based AI hardware companies.

Prime Minister Keir Starmer earlier announced a £400 million commitment for specialist AI chip purchases. Government officials described Kendall’s announcement as building on that earlier pledge.

Industry figures responded to the funding. Andy McLean, chief executive of the UK Semiconductor Centre, described semiconductors as the “foundation on which AI is built” and added the UK has a “significant opportunity” to lead in research and development. Steve Brierley, chief executive and founder of Riverlane, argued innovation must be matched by capital and specialist skills and urged a coordinated approach across high‑performance computing, AI and quantum technologies, saying the government can act as a “smart buyer” to create markets and accelerate adoption.

Officials described the planned supercomputer as one of the most advanced in the world when completed and said it will give researchers and companies access to scalable compute to develop and test AI models. The government framed the funding as a measure to secure domestic supply chains, help startups and expand the workforce needed for long‑term hardware and AI development.