“The UK is in a Goldilocks situation” with favorable conditions for AI companies to flourish, Huang stated during a discussion with UK Prime Minister Keir Starmer at the kickoff of London Tech Week on Monday. “This is the largest AI ecosystem globally lacking adequate infrastructure.”
The AI models powering generative tools like ChatGPT demand significant compute capacity from extensive data centers to develop and manage inquiries from millions of users worldwide. These data centers, in turn, require ample electricity, water, and additional infrastructure. Recognizing the support needed, Starmer announced on Monday an additional 1 billion pounds ($1.4 billion) in funding to “scale up our compute power by a factor of 20” and enhance the infrastructure for advancing artificial intelligence in the UK.
The government also revealed a collaboration with Nvidia to train more individuals in AI skills and broaden research opportunities.
Europe has faced challenges in competing with the US and China in generating innovative generative AI companies and stimulating data center growth comparable to its rivals. Huang is touring the continent this week, where he mentioned “numerous AI factories being planned” across the region. He is also expected to address attendees at Paris’s VivaTech on Wednesday and will be meeting with leaders in the UK, Germany, France, and Belgium.
“What is remarkable and presents an incredible opportunity for the UK: AI is not only a technology but also an infrastructure as it impacts many industries simultaneously,” Huang remarked. “Given its broad and transformative nature across every single industry, it will be regarded as infrastructure just like electricity.”
The UK’s Financial Conduct Authority also announced on Monday the establishment of a regulatory sandbox to allow financial firms to explore AI using Nvidia’s technology. These sandboxes enable companies with innovative ideas at the convergence of finance and technology to test their products and services before launching them fully.
Liquidity, a startup lender, will establish a European headquarters in London, committing to invest 1.5 billion pounds in companies over the next five years.
