While pageantry unfolded at Windsor Castle during US President Donald Trump’s state visit, a more consequential display was taking place in the old Camden Town Hall, opposite London’s St Pancras station.
Before Prime Minister Sir Keir Starmer, members of both British and US cabinets, and leading figures from the European tech sector, a meticulously produced video showcased the rich history of UK science, featuring luminaries like George Stephenson, Charles Babbage, Ada Lovelace, Alan Turing, and Sir Demis Hassabis, alongside a roster of UK start-ups from across the nation.
The presentation resembled a blend of a UK government investment promotion and the Danny Boyle-directed 2012 Olympic Opening Ceremony, with one notable distinction: the narration was provided by Jensen Huang, the American artificial intelligence (AI) and microchip titan from Nvidia.
Trump recently remarked that Huang “was taking over the world,” and the head of the company, which achieved a market valuation of $4 trillion (£2.9 trillion) this summer, seems to have made a substantial commitment to the UK.
Huang enthusiastically highlighted the numerous British entrepreneurs in which Nvidia has acquired stakes and expanded following an additional £2 billion investment.
He invited Business Secretary Peter Kyle and his US counterpart, Howard Lutnick, to address the assembled British entrepreneurs. Lutnick, a figure associated with the global trade landscape, stated, “We are America first, but we are not America only… We want to win, we want you to win.”
This scene epitomized the remarkable trend of major Silicon Valley tech companies opening up transatlantic investment channels.
The UK was at the center of a “tech bromance” this week, marked by multi-billion investments from Nvidia, Microsoft, and Google.
This represents an early success for the government’s strategy of attracting such investments to drive long-term transformation in Britain and its economy.
However, it remains to be seen whether this strategy will fully succeed in revitalizing the economy, raising living standards, and addressing the prevailing negative sentiments surrounding the economy and politics.
Indeed, the buoyant optimism of US tech giants regarding Britain contrasted with the more pervasive sense of pessimism within the country.
Huang himself expressed surprise at Britain’s self-perception. “This is the week that I declare that the UK will be an AI superpower,” he asserted, acknowledging the roles of the prime minister and Kyle.
“You [Brits] just don’t appreciate it. Come on. You’re too humble,” he remarked, emphasizing the historical and contemporary significance of tech research originating from the UK.
Microsoft announced a £22 billion investment and the expansion of the Stargate AI plan—aimed at enhancing AI infrastructure over the next four years—to the UK.
Microsoft CEO Satya Nadella described this as the path for AI to become a general-purpose technology, akin to electricity or the internet, although it already feels quite pervasive.
On Tuesday, UK Chancellor Rachel Reeves inaugurated Google’s new data center in Essex, accompanied by Google President Ruth Porat. This followed Google’s announcement of a £5 billion investment in infrastructure and DeepMind, the London-based AI research company led by Nobel laureate Sir Demis Hassabis.
Porat, a highly influential business leader with roots in Manchester and a regular participant in presidential trade missions, emphasized the “profound opportunity” for the UK but also acknowledged that “there was work to do.”
Amidst the upbeat narrative, a surprising critique of US investment came from former Deputy PM and Facebook executive Sir Nick Clegg, who argued that Britain was “clinging on to the coattails of Uncle Sam” and receiving “crumbs from the Silicon Valley table.”
“Not only do we import all their technology, we export all our good people and good ideas as well,” he added.
While no explicit quid pro quo regarding digital taxes or changes to the online safety bill was apparent in the Tech Prosperity Deal signed this week, the UK appears to be broadly aligned with the US administration’s approach, particularly concerning AI.
Lutnick informed the start-up audience that he had abandoned Biden-era AI Safety initiatives in favor of “leaning forward” on the technology, a stance mirrored by the UK government in some respects.
The broader context is that the three US giants responsible for the majority of last week’s tech investment are now worth $9 trillion on US stock markets, making them well-positioned for acquisitions, with significant sums flowing into the UK.
The aspiration is that this Silicon Valley influence will extend to the scientific Golden Triangle of Oxford-Cambridge-London, “and don’t forget the Open University in Milton Keynes,” added Kyle.
What, then, of the familiar complaint about losing our best technology and struggling to cultivate the world’s largest companies?
DeepMind, acquired by Google for £400 million in 2014, could be viewed as an example of this. However, another perspective is that the current appreciation for the tech giant is partly due to DeepMind’s London-based research across various aspects of frontier technology.
The recent surge in Google’s share value to over $3 trillion is attributed to the perception that it is no longer lagging in the AI race.
Chip designer Arm Holdings, another UK champion sold to foreign ownership, provides technology central to the chips in almost all smartphones, including iPhones. There are suggestions that Arm may explore manufacturing its own chips as the West seeks to reduce supply chain risks.
It is often overlooked that Huang came close to acquiring Arm Holdings in 2022 before regulatory authorities investigated the deal on competition grounds under the previous Conservative government.
When asked about this, Huang sighed, “Don’t remind me… I tried.”
Despite the important foundational work done by the previous government under Rishi Sunak and Jeremy Hunt, it is clear that Arm felt aggrieved by its treatment and welcomed engagement when Kyle visited Silicon Valley last year in a T-shirt.
This may indicate the potential long-term consequences of this UK-tech bromance, possibly influencing the “pro-growth” direction given to regulators, including the dismissal of the chair of the CMA in January.
This influx of US capital believes it has found a secure haven in the UK, arguably safer than anywhere else in Europe.
The result could be that the UK economy becomes a tech laboratory for the world, or perhaps mainly for US giants. The state visit certainly had an undercurrent of the UK joining forces with the US in a long-term AI tech battle with China.
Huang contended that this was not a “zero-sum game.” “President Trump wants to win, and so does President Xi. It’s possible they both can.”
In its own terms, this week demonstrated the government’s success in attracting significant investment to boost the economy. However, this does not resolve the immediate challenges in public finances ahead of the Budget.
The US, including San Francisco, illustrates that tech-fueled booms can often leave many behind.
There are evident concerns about the widespread rollout of AI already impacting certain industries and entry-level graduate jobs. Before AI becomes a mass job creator, it will visibly displace clerks, junior accountants, paralegals, and creatives.
But perhaps the most significant benefit will be a sense of optimism created for the UK.
The UK is now fully committed to AI. Britain will become increasingly reliant on this US tech, while, simultaneously, the US giants need British expertise. This dynamic could shape the economy and the country for decades to come.
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