LONDON, Sept 16 (Reuters) – The UK and the US have signed a technology pact to strengthen collaboration in AI, quantum computing, and civil nuclear energy, with major U.S. firms, led by Microsoft, committing £31 billion ($42 billion) in UK investments.The “Tech Prosperity Deal” coincides with President Donald Trump’s second state visit to Britain, including a ceremonial day at Windsor Castle hosted by King Charles and the royal family.
The agreement aims to develop AI applications for healthcare, expand quantum computing, and accelerate civil nuclear projects, while promoting economic growth, scientific research, and energy security in both nations.
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British Prime Minister Keir Starmer said the deal could shape the future of millions on both sides of the Atlantic, driving growth and security. The U.S. is the UK’s largest trading partner, with major tech firms already investing billions in the country.
Facing pressure to reverse years of slow economic growth, Starmer aims to attract further investment by favoring U.S.-style light-touch regulation in areas like AI, rather than the EU’s more interventionist approach. While the Trump administration has criticised Europe’s online safety laws and digital taxes, these issues were not part of the discussions in the pact.
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US TECH GIANTS BOOST UK INVESTMENTS
Under the announced deals, Nvidia plans its largest European rollout, deploying 120,000 GPUs across the UK. It will also deploy up to 60,000 Grace Blackwell Ultra chips with UK-based Nscale, partnering with OpenAI on the Stargate project and collaborating with Microsoft to create Britain’s largest AI supercomputer.
Microsoft will invest £22 billion to expand cloud and AI infrastructure, including the supercomputer in Loughton, northeast London. CEO Satya Nadella emphasized keeping the U.S. a trusted tech partner, while President Brad Smith highlighted improved relations after the UK approved Microsoft’s Activision Blizzard acquisition.
David Hogan, the VP of Nvidia, said the investments would “make the UK an AI maker, not a taker.” Google pledged £5 billion for a new data centre in Waltham Cross and AI research via DeepMind. CoreWeave committed £1.5 billion for energy-efficient data centres with Scottish firm DataVita, totaling £2.5 billion in the UK.
Other major investors include Salesforce, Scale AI, BlackRock, Oracle, Amazon Web Services, and AI Pathfinder, contributing hundreds of millions to several billion pounds.
Frequently Asked Questions
What is the UK-US Tech Prosperity Deal?
The Tech Prosperity Deal is an agreement between the UK and the US to strengthen collaboration in AI, quantum computing, and civil nuclear energy.
How much are US tech companies investing in the UK?
US tech firms, led by Microsoft, Nvidia, and Google, are committing a total of £31 billion ($42 billion) in UK investments.
Which companies are involved in the deal?
Key participants include Microsoft, Nvidia, Google, CoreWeave, Salesforce, Oracle, Amazon Web Services, BlackRock, Scale AI, and AI Pathfinder.
What projects will the investments support?
Investments will fund AI supercomputers, quantum computing development, data centers, energy-efficient infrastructure, and healthcare-focused AI models.
Where will the AI supercomputer be located?
Britain’s largest AI supercomputer, part of the deal, will be established in Loughton, northeast London.
How does this deal impact the UK economy?
The pact aims to drive economic growth, scientific research, technological innovation, and strengthen energy and digital security in the UK.
How does this affect UK-US relations?
The deal strengthens ties between the UK and the US, highlighting the US as a trusted tech partner and encouraging further investment.
Conclusion
The UK-US Tech Prosperity Deal marks a historic step in transatlantic collaboration, with $42 billion in investments driving AI, quantum computing, and energy innovation. By attracting major tech firms and expanding critical infrastructure, the pact strengthens economic growth, scientific research, and technological leadership for both nations.
