This country aims to build homegrown rival to OpenAI in ambitious AI push

The United Kingdom is on a mission to become a global leader in artificial intelligence (AI) by creating a homegrown competitor to OpenAI, as Prime Minister Keir Starmer’s government unveils plans to ramp up national computing infrastructure. This bold move is part of the UK’s strategy to establish itself at the forefront of AI development, reduce reliance on foreign tech giants, and boost its economic and national security standing.

Starmer is set to visit Bristol, England, this Monday to announce the UK’s commitment to building a sovereign AI ecosystem. The plans are the result of extensive work by British tech investor Matt Clifford, who led the creation of an "AI Opportunities Action Plan." This initiative aims to leverage the UK’s strengths to unlock the potential of AI technologies and ensure the country’s position as a global AI powerhouse.

A key focus of the strategy is expanding the UK’s data center capacity. These centers are critical to training and running AI models, particularly those that require powerful computing systems. To meet this demand, the UK government has set a target to increase "sovereign" or public sector compute capacity by twentyfold by 2030. As part of this pledge, the government will open up access to the AI Research Resource, an initiative designed to enhance the nation’s computing infrastructure.

However, the UK’s AI ambitions are not without challenges. Last year, the government canceled £1.3 billion in taxpayer-funded commitments toward two major computing projects — an AI Research Resource and a next-generation supercomputer — which were initially promised under Starmer’s predecessor, Rishi Sunak. Despite this setback, Starmer’s administration is moving ahead with a series of initiatives, including the creation of AI “growth zones.” These zones will relax planning permissions in certain areas to facilitate the development of new data centers.

As part of its comprehensive AI strategy, the UK government is also setting up an "AI Energy Council" to explore the role of renewable and low-carbon energy sources, such as nuclear power, in fueling the data centers that power AI systems. Tech giants like Amazon, Microsoft, and Google are already investing heavily in small modular reactors (SMRs) to support their own AI infrastructure, and the UK government plans to follow suit.

A cornerstone of the UK’s AI strategy is to develop “sovereign” AI models that are not dependent on the tech behemoths in Silicon Valley. To achieve this, the UK plans to leverage AI growth zones and the newly established National Data Library to connect public institutions, including universities, with the goal of fostering innovation and creating AI models that are uniquely British.

However, creating a challenger to OpenAI won’t be easy. The UK faces significant hurdles, particularly in the realm of funding. Entrepreneurs in the country have raised concerns about the difficulties faced by startups in securing the capital needed to compete with the deep pockets of Silicon Valley. Many UK founders and venture capitalists have called for pension funds to allocate more money toward riskier, growth-focused startups — a reform the government has promised to push forward.

Despite these challenges, tech leaders have praised the government’s AI action plan. Zahra Bahrololoumi, Salesforce’s UK boss, described the plan as “a forward-thinking strategy” that underscores the UK’s commitment to AI safety, transparency, and collaboration. Cisco’s CTO in the UK, Chintan Patel, also expressed support, calling the plan a crucial step toward establishing the UK as an AI superpower.

While the UK is still developing formal AI regulations, Starmer’s government has signaled its intent to create legislation that strikes a balance between encouraging innovation and ensuring AI safety. This regulatory approach will distinguish the UK from the European Union, which has introduced a more stringent AI regulatory framework under its AI Act.

With a clear vision and growing momentum, the UK’s ambition to build a homegrown rival to OpenAI could reshape the future of AI and solidify the country’s role as a global leader in the technology.