Money would be used to place orders for essential parts from Nvidia, AMD, and Intel, three of the world’s largest chip manufacturers.
The government will invest £100 million in an effort to establish the UK as a contender in the race to create the computer chips that will fuel artificial intelligence.
In an effort to create a national artificial intelligence resource in Britain that is comparable to those being developed in the US and other countries, funding from taxpayers will be utilised. It is anticipated that the money is going to be used to place orders with significant semiconductor manufacturers Nvidia, AMD, and Intel for essential parts.
An official who was briefed on the plans, however, told a publication that the government’s offer of £100 million is much too low when compared to investments made by competitors in the US, China, and the EU.
The official confirmed that government is in the advanced stages of placing an order for as many as 5,000 graphic processing units (GPUs) from Nvidia, a move that was first reported via the Telegraph, which additionally revealed the spending.
The business, which first built processing power for video games, has experienced a significant rise in valuation as the AI competition has intensified. Its chips can run ChatGPT and other language learning programs.
GPUs, often known as graphics cards, are a crucial component of chips’ processing power and are slated for ordering. They are essential for running sophisticated operations like those required by AI.But in industry and Whitehall, concerns are growing that the United Kingdom’s government action may turn out to be too little, too late. Just 0.5% of all semiconductor sales are made in the UK.
In comparison to the US’s $52 billion (£41 billion) Chips Act and the EU’s €43 billion (£37 billion) in subsidies, Rishi Sunak’s government announced intentions to invest £1 billion over a decade in semiconductor research, design, and production in May.
The UK may be susceptible if progress is slowed down as a result of comparatively weak investment as geopolitical conflicts surrounding AI chip technology rise.
The White House made a step earlier this month to forbid US investment in sophisticated Chinese microconductors. The action was taken only a month after China claimed that semiconductors made by US company Micron posed a security danger.
In an effort to persuade foreign partners whether Britain can serve as an intermediary for the United States and China on this subject, Sunak has looked out regulations as a viable area for the UK to play a role on the international arena.
The UK will host an artificial intelligence (AI) summit this fall as part of his administration’s initiative to create some common guidelines for technology that some fear could endanger humanity’s existence.
Along with the department responsible for Science, Innovation, and Technology, the United Kingdom’s Research and Innovation Authority is a financing organization that is driving the initiative to place the UK’s orders with significant chip makers.