Amidst a global shortage and scramble for computing capacity, British Prime Minister Rishi Sunak plans for the UK to spend $130M on AI chips to purchase thousands of computer processors to boost artificial intelligence. As part of Sunak’s strategy to turn the nation into an AI tech centre, The Telegraph reported on August 20 that the UK hopes to establish an “AI Research Resource” by the middle of 2024.
Plan of Action Revealed: New Things Are Brewing!
To create a national AI resource such as the UK to spend $130M on AI chips that are comparable to those being developed in the US and other countries, taxpayer money will be utilized. It is anticipated that the funds will be used to place orders with significant semiconductor manufacturers, Nvidia, AMD, and Intel, for essential parts.
However, an official who was briefed on the plans told the Guardian that the government’s offer of £130 million, as the UK spends $130M on AI chips, is much too low compared to investments made by competitors in the US, China, and the EU.
Further 130 Million USD Investment details
The UK Research and Innovation organization, which is leading the initiative and is sourcing chips from manufacturers NVIDIA, Intel, and AMD, is reportedly close to placing an order for 5,000 NVIDIA graphic processing units (GPUs) as the UK to spend $130M on AI chips.
Although $130 million has been set aside for the project, it is allegedly believed that this amount falls short of Sunak’s aim for an AI hub. As a result, government representatives may push for further money at an upcoming summit on AI safety in November. It comes in response to a recent study that found many businesses are having trouble implementing AI owing to a lack of funding and technical challenges.
Massive Order from Government to Nvidia: What lies ahead?
The business, which first built processing power for video games, has experienced a significant rise in value 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 UK government action referring to the UK spending $130M on AI chips may be too little or too late. Just 0.5% of all semiconductor sales are made in the UK.
What are British PM Rishi Sunak’s Further Plans?
Rishi Sunak’s government announced intentions to invest £1 billion over 10 years in semiconductor research, design, and production in May post-UK, spending $130M on AI chips. The UK may be susceptible if progress is slowed down as a result of comparatively weak investment as geopolitical conflicts over AI chip technology rise.
The White House made a step earlier this month to forbid US investment in sophisticated Chinese micro conductors. The action was taken only three months after China claimed that semiconductors made by US company Micron posed a security danger.
To persuade foreign partners that Britain can serve as a bridge between the US and China on this subject, Sunak has looked at regulation as a viable area for the UK to play a role in the international arena. The UK will host an AI summit this autumn 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 for Science, Innovation, and Technology, UK Research and Innovation is a financing organization that is driving the initiative to place the UK’s orders with significant chip makers.