The UK’s artificial intelligence (AI) sector is on the brink of major growth, according to Jensen Huang, CEO of Nvidia, the world’s leading AI hardware company. Speaking at London Tech Week, Huang praised Britain’s AI ecosystem as “one of the richest AI communities anywhere on the planet,” citing its innovative startups, world-class universities and dedicated researchers. But he warned that without stronger digital infrastructure, the UK will struggle to realise its full potential.
Huang spoke alongside Prime Minister Sir Keir Starmer, who acknowledged public scepticism about AI’s impact on jobs and economic stability. He said the government must prove that AI can deliver real benefits to people’s everyday lives.
Huang highlighted recent commitments from major tech firms and welcomed the UK’s £1 billion pledge to boost its AI computing power twentyfold. Cloud providers including CoreWeave and Nebius are building data centres designed to run on Nvidia’s chips, part of a wider strategy to establish Britain as a global tech force.
Despite this progress, the UK remains well behind the US and China in private AI investment. Stanford’s 2025 AI Index Report found the UK attracted $4.5 billion last year, compared with $109.1 billion in the US and $9.3 billion in China. In response, the government’s AI Opportunities Action Plan includes faster planning approval for data centres and the UK’s first dedicated site at Culham in Oxfordshire.
Starmer has linked AI investment to economic growth, projecting an annual productivity rise of 1.5%—equivalent to £47 billion over ten years. But questions remain about job creation. While infrastructure projects like the £10 billion Northumberland initiative promise thousands of roles, experts caution that data centres themselves offer limited employment, calling for more realistic forecasts.
Starmer stressed the importance of working closely with the public. “When it comes to harnessing the power of this technology, I believe that the way we work through this together is critical,” he said. His government is also training civil servants in AI to improve public services.
As AI adoption accelerates, environmental concerns are mounting. Analysts warn that the energy demands of data centres could undermine renewable energy targets. Proposals include building data centres near green energy sources to offset their carbon footprint.
The UK’s ability to convert its AI talent into a globally competitive infrastructure will be tested in the months ahead. Balancing innovation with public trust and environmental responsibility will shape the country’s standing in the global AI race.
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