Labour has decided to withdraw £1.3 billion in funding for tech and AI projects that were initially promised by the Tories. The Department for Science, Innovation, and Technology (DSIT) stated that the funding, which was committed by the previous Conservative government, was not factored into its budget and therefore will not be moving forward.
The funding included £800 million for the development of a next-generation exascale supercomputer at the University of Edinburgh, capable of performing an astounding one billion billion calculations per second. Additionally, £500 million was allocated for the AI Research Resource, a program that assists in funding computing power for AI. However, the £300 million that had already been designated for the AI Research Resource will continue as planned.
A spokesperson for DSIT emphasized the government’s dedication to constructing technology infrastructure that promotes growth and opportunity throughout the UK. The decision to cut funding is part of the government’s broader efforts to address unfunded commitments and ensure economic stability in pursuit of national growth.
Barney Hussey-Yeo, the founder and CEO of Cleo AI, an AI startup focusing on financial management, criticized the cancellation of funding, stating that it will negatively impact AI companies in the UK. He highlighted the importance of investing in tech and AI to drive economic growth and warned that without national compute capability for AI training and research, the UK risks falling behind other global players.
In response to the funding cut, Andrew Griffith, the Conservatives’ shadow science, innovation, and technology secretary, defended the previous government’s commitment to increasing public spending on research. He expressed disappointment in Labour’s decision and emphasized the significance of AI and exascale compute projects in driving technological advancement and economic growth.
The future of the exascale supercomputer project at the University of Edinburgh is now uncertain, despite the university having already invested £31 million in preparation for the initiative. The university is eager to collaborate with the government to advance this technology and reap its benefits for various sectors.
With the fate of these groundbreaking projects hanging in the balance, the tech and AI sectors in the UK face uncertainty and potential setbacks in their quest for innovation and competitiveness on the global stage. It remains to be seen how the government will address the void left by the withdrawal of funding and support for these critical initiatives.
