Wed, 17 Sep 2025

Wed, 17 Sep 2025 New AI deal could rapidly boost UK economy says Microsoft boss

Boss Satya Nadella said it was the biggest investment the firm had made outside of the US.
Microsoft has announced a £22bn investment in the UK's AI sector, its largest outside of the US, as part of a "Tech Prosperity Deal" signed between the UK government and several US tech giants. The deal aims to boost Britain's economy and create thousands of new jobs. Microsoft CEO Satya Nadella said the investment could lead to significant economic growth in the next few years. The package includes Google's £5bn commitment to AI research and infrastructure over two years, Nvidia's pledge to develop AI in the UK, and a £11bn investment in the country's largest AI infrastructure rollout. The UK government has also signed agreements with US technology companies, including an agreement to use OpenAI services in the public sector. The deal is part of US President Donald Trump's second state visit to the UK and aims to strengthen ties between the two countries on AI, quantum computing, and nuclear power. However, there are concerns that accepting so much money from US investors will mean the UK relies too much on foreign technology. Microsoft's Satya Nadella said the agreement defined "the next phase of globalisation" and argued that having access to foreign tech services leveraged digital sovereignty rather than threatened it. He also acknowledged that AI is a lucrative market, but warned against over-hyping its potential benefits. The UK government has announced plans to create an "AI growth zone" in north-east England, which could lead to thousands of new jobs and billions in private investment. However, experts warn that the UK needs to reform planning rules and accelerate the delivery of clean energy projects to meet the demands of the growing tech sector. The deal is seen as a breakthrough moment for the UK's tech industry, but there are concerns about the country's reliance on foreign technology and the potential risks associated with AI.
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