On June 9th local time, British Secretary of Science and Technology Liz Kendall stated in an interview with the American consumer news and business channel (CNBC) that the UK has “incredible talent and advantages” in the fields of artificial intelligence (AI), hardware, and future chips.
Then, a CNBC reporter asked, "Considering that the UK has to compete with China as well as with the United States, is 1 billion pounds really enough?"
Last year, the British government released the “UK Computing Roadmap”, planning to invest £2 billion by 2030 to create a world-class computing ecosystem. Of this amount, £1 billion is dedicated to AI research.
"Absolutely," Kendall exhibited immense confidence, "the chip market is rapidly diversifying. In fact, government investment appears limited but holds significant meaning for start-ups, helping to leverage additional support from the private sector."
She said that British startups are aware that if their chips reach a certain stage of development, the government will be the first buyer.
However, according to British media reports, in recent years, the UK has faced a serious "bleeding" crisis in the fields of semiconductors and AI. Many semiconductor companies have been acquired by foreign buyers, and Arm, one of the most successful semiconductor companies in the UK, is already listed in the United States. The British government is deeply concerned about this situation, believing that excessive reliance on US technology giants not only weakens the competitiveness of domestic industries but also poses serious security risks.
When asked about related issues, Kendal said that the British government is committed to protecting the local technology ecosystem and supports local AI companies more.
"But for the UK, sovereign control does not mean isolation or complete self-sufficiency..." she continued to say, "If you want to gain greater control, you need greater influence, which means aiming to get as close to the forefront as possible, becoming an indispensable key partner in global technological architecture."
Kendell also denied that AI development will take away jobs from British people. She said that AI is creating employment opportunities, changing jobs, and freeing people from repetitive tasks or tedious work, allowing them to focus on what’s most important.
Kendal Answers CNBC Interview – Video Screenshot
Amid the global AI boom, as early as January last year, the UK's Sturgeon government introduced an ambitious "AI Opportunity Action Plan," with the goal of becoming a "superpower in artificial intelligence."
In order to compete with Chinese and American giants, the British government has launched a series of policies to support the development of semiconductors and AI industries. It has invested substantial funds and introduced favorable regulatory measures to support the growth of startups and accelerate the widespread application of AI.
Since then, there have been positive signs in the UK. Many global tech giants have promised to invest in AI infrastructure in the UK.
But according to CNBC in December last year, the high energy costs in the UK, along with the strict restrictions on accessing the national electricity grid, have become key obstacles to the development of AI in the UK. AI significantly increases energy demand, and as more businesses and consumers start using AI technology, it puts additional pressure on the already strained energy system in the UK.
"An ambitious vision, but does the implementation still lag behind?" said Ben Prichard, CEO of AVK, a data center power solution provider.
CNBC pointed out that developing AI poses significant challenges for the UK. Firstly, Europe’s investment in data centers is negligible compared to that of the United States. At the same time, the UK’s current energy costs are among the highest in Europe, which are 75% higher than before the outbreak of the Russo-Ukrainian conflict. Moreover, it may take many years for outdated grid infrastructure to be connected to new sites.
