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US UK sign 42bn tech deal to boost AI and energy ties

The United Kingdom and the United States have signed a landmark technology pact worth $42 billion, aimed at strengthening cooperation in […]

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The United Kingdom and the United States have signed a landmark technology pact worth $42 billion, aimed at strengthening cooperation in artificial intelligence, quantum computing, and civil nuclear energy. Dubbed the “Tech Prosperity Deal,” the agreement was announced during U.S. President Donald Trump’s second state visit to Britain. It seeks to boost economic growth, scientific research, and energy security in both nations by developing AI models for healthcare, expanding quantum‑computing capabilities, and streamlining civil‑nuclear projects.

Top U.S. firms are leading the investment effort. Microsoft will commit $22 billion to expand its cloud and AI infrastructure, including the creation of Britain’s largest AI supercomputer in Loughton, north‑east London. Nvidia plans to deploy 120,000 graphics‑processing units across the UK—its biggest rollout in Europe—and will partner with OpenAI and Microsoft on various initiatives. Google has announced a $5 billion investment that includes a new data centre in Waltham Cross, north of London, and continued support for AI research through its DeepMind project. Additional commitments come from Salesforce, Scale AI, BlackRock, Oracle, Amazon Web Services, and AI Pathfinder, with investments ranging from hundreds of millions to several billion pounds.

Prime Minister Keir Starmer welcomed the deal, saying it could shape the future of millions on both sides of the Atlantic and deliver growth and security. The United States is Britain’s single largest trading partner, and the pact is expected to deepen those economic ties. The Tech Prosperity Deal arrives at a time when Britain’s economy has shown weak growth, and the government hopes a light‑touch regulatory approach—mirroring the U.S. stance on AI—will attract further investment.

The agreement does not address European online‑safety laws or digital taxes, issues that have previously strained U.S.–EU relations. Nonetheless, the announced investments are set to position the UK as a major player in AI and other emerging technologies. As Nvidia’s vice‑president for enterprise, David Hogan, put it, the funding will “truly make the UK an AI maker, not an AI taker.” Overall, the deal marks a significant step forward in the UK‑US economic relationship and is expected to have a lasting impact on the growth and development of both countries.

Ifunanya

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