In a significant move ahead of US President Donald Trump’s state visit, Google’s parent company, Alphabet, has pledged a substantial £5 billion (approximately $6.8 billion) investment in the United Kingdom’s artificial intelligence sector. This funding, spread over the next two years, is part of a series of major American investments timed to coincide with the presidential visit.
A Powerful Vote of Confidence
The investment will be used for both infrastructure development and scientific research. According to Ruth Porat, Google’s President and Chief Investment Officer, the UK offers “profound opportunities” for the company’s “pioneering work in advanced science.”
This initiative includes the official opening of a new $1 billion (£735 million) data center in Waltham Cross, Hertfordshire, with Chancellor Rachel Reeves in attendance. The funds will also support Google’s London-based DeepMind, a research lab led by Nobel Prize winner Sir Demis Hassabis, which uses AI to advance scientific discovery.
Chancellor Reeves hailed the announcement as “a powerful vote of confidence in the UK economy” and a testament to the strong partnership between the two nations. Porat echoed this sentiment, describing a “US-UK special technology relationship” with immense potential for economic growth and scientific progress, while also acknowledging the need to mitigate potential risks together.
The Broader AI Landscape
Porat highlighted the UK government’s AI Opportunities Action Plan as a catalyst for the investment, though she noted that more work is needed to fully realize the benefits of the AI boom. The investment comes as Alphabet’s market value recently surpassed $3 trillion, making it the fourth company to reach this milestone, following other tech giants like Nvidia, Microsoft, and Apple. The company’s share price has also seen a recent boost after a US court decided against breaking it up.
Porat attributed Google’s recent success to its strategic shift to an “AI First” business model, which has helped it catch up with and even surpass newer AI startups like OpenAI.
The announcement also addressed concerns about the environmental impact of AI technology. Porat stated that the new data center will be air-cooled, with excess heat repurposed to warm local schools and homes. The company has also partnered with Shell to provide 95% carbon-free energy for its UK operations. Porat emphasized Google’s commitment to renewable energy, but also stressed the importance of modernizing the power grid to manage the variable nature of wind and solar power.
Regarding the potential for AI to cause job displacement, Porat acknowledged the risks but also highlighted the creation of new industries and roles. She suggested that AI would collaborate with people in fields like nursing and radiology rather than replacing them. She urged everyone to embrace and learn how to use AI as an assistant, rather than fearing it.
