Google has announced a significant £5 billion investment in the UK over the next two years, aimed at bolstering the nation's artificial intelligence (AI) capabilities and supporting growing demands for AI services. The pledge coincides with the opening of Google's new data centre in Waltham Cross, Hertfordshire, and is expected to generate thousands of jobs.
Key Takeaways
Google commits £5 billion to UK investment over two years.
Investment to support AI services, R&D, and job creation.
Concerns raised over a potential UK-US tech deal impacting online child protections.
Google's Investment Details
The substantial investment from the tech giant will be directed towards capital expenditure, research and development, and related engineering efforts. A key focus will be on pioneering AI research in sectors such as science and healthcare through Google's DeepMind division. The company anticipates this investment will foster the UK's AI economy, drive technological advancements, enhance cybersecurity, and create an estimated 8,250 jobs annually within UK businesses.
Demis Hassabis, co-founder and CEO of DeepMind, highlighted the UK's historical significance in technological innovation, stating, "We founded DeepMind in London because we knew the UK had the potential and talent to be a global hub for pioneering AI." He added that the investment continues this legacy by supporting the next wave of innovation and scientific discovery.
Political Reactions and Concerns
Chancellor Rachel Reeves welcomed the announcement, describing it as a "vote of confidence" in the UK economy. However, the timing of Google's pledge has drawn attention as it precedes a state visit by Donald Trump, during which a new UK-US tech deal is widely expected to be signed.
Concerns have been voiced by Liberal Democrat leader Sir Ed Davey, who has labelled the proposed deal a "Silicon Valley stitch-up." He has called for a parliamentary vote on the agreement, expressing worries that it could lead to tax cuts for tech billionaires while potentially weakening online protections for children. Sir Ed emphasised the public's desire for robust child online safety measures to be maintained, rather than compromised in private agreements with tech companies.
