Nvidia commits GBP2 billion to investing in UK AI ecosystem

Nvidia Corp on Thursday said it will invest GBP2 billion to support the development of the UK's artificial intelligence ecosystem and back local startups.

In announcements earlier this week, the world's dominant chipmaker said it will work with partners to collectively invest up to GBP11 billion in UK AI factories, with Nvidia allocating GBP500 million towards an investment in UK-based cloud computing firm NScale Global Holdings Ltd.

The company also revealed plans to spend USD5 billion acquiring common stock in fellow Santa Clara, California-based chipmaker Intel Corp.

Nvidia shares closed 3.5% higher at USD176.24 in New York on Thursday before rising 0.1% after hours, while Intel shares ended 23% higher at USD30.75 before falling 0.1% after hours.

Adding to its recent investment drive, Nvidia has now committed to spending GBP2 billion to bolster the UK's AI infrastructure ecosystem.

"The new capital will be used to foster economic growth, develop more innovative AI technologies, create new companies and jobs, and empower the UK to compete in the AI market globally," Nvidia explained.

Such capital will be made accessible in the UK's key economic and technology centres, including London, Oxford, Cambridge, and Manchester.

The company confirmed that several venture capital firms would join its efforts to provide new funding to UK AI startups.

"Nvidia’s investment is a major vote of confidence in the UK both today and long into the future," said UK Prime Minister Keir Starmer. "By backing our startups, empowering our researchers and connecting capital with talent, this partnership will create jobs, spark new industries and ensure the UK remains at the forefront of global AI leadership."

"The United Kingdom is in a Goldilocks moment, where world-class universities, bold startups, leading researchers and cutting-edge supercomputing converge. There has never been a better time to invest in the UK," added Chief Executive Officer Jensen Huang.