The UK government announced a $1.47 billion plan to build a national AI supercomputer and reduce dependence on foreign-made AI hardware.

The UK will spend more than $1 billion on a national AI supercomputer stocked with $530 million worth of hardware, including $200 million for specialist inference chips (hardware designed to process AI tasks). British researchers and startups are expected to use it starting in 2030.

Priority in procurement will go to up-and-coming British firms, with UK startups Olix and Fractile—both developing new inference chip designs—named as potential beneficiaries. The UK government aims to use its purchasing power to support their growth and keep them in the country long-term.

This supercomputer plan is the latest part of the UK's broader effort to reduce dependence on foreign AI technology. In November, the UK began establishing 'AI growth zones' with fewer regulatory barriers to building data centers; in April, it launched a $675 million venture fund called SovAI for homegrown AI startups.