After promising a significant investment of £1.3bn in technology and AI projects, the previous Conservative administration’s commitment has been pulled by the Labour government. This decision was made by the Department for Science, Innovation and Technology (DSIT) as the promised funding was not allocated in their budget.
The proposed investment included £800m for the development of a next-generation exascale supercomputer at the University of Edinburgh, capable of performing one billion billion calculations per second. It also included an additional £500m for the AI Research Resource, a scheme that provides funding for computing power in AI.
However, according to a DSIT spokesperson, only the £300m already earmarked for the AI Research Resource will proceed as planned. In a statement, the spokesperson emphasized the government’s commitment to building technology infrastructure for growth and opportunities across the UK. They also acknowledged the difficult but necessary spending decisions being made in all departments to restore economic stability and achieve their national mission for growth.
In response to the axing of funding, Barney Hussey-Yeo, founder and CEO of Cleo AI, a startup specializing in AI for financial management, expressed his disappointment. He stated that this decision would not only harm AI companies in the UK but also hinder the country’s progress in economic growth compared to the US and China.
The Labour government has stated that they will consider future investment in computer infrastructure after the development of their AI Opportunities Action Plan, led by industry expert Matt Clifford.
Meanwhile, Andrew Griffith, the Conservatives’ shadow science, innovation and technology secretary, has criticized the Labour government’s decision. In a social media post, he stated that the previous administration had increased public spending on research to a record £20bn a year and had committed to a further 10% increase in their manifesto. He also pointed out that both the AI Research Resource and the exascale supercomputer project were beneficiaries of this increased funding.
Griffith also clarified that, at the time of calling the election, ministers had been advised by officials that the DSIT was likely to underspend its budget for the current financial year.
The fate of the exascale supercomputer project is now uncertain, with the University of Edinburgh having already invested £31m in a new wing of its advanced computing facility specifically for the supercomputer. The university’s website stated that they had expected to begin the first phase of installation in 2025. A university spokesperson declared their readiness to work with the government in supporting the next phase of this technology for the benefit of industry, public services, and society.
It has been reported that the university’s principal and vice-chancellor, Professor Sir Peter Mathieson, is urgently seeking a meeting with the technology secretary to discuss the matter.
