Tech Setback: Labour Withdraws £1.3bn from Pioneering AI and Supercomputer Initiatives

Labour withdraws £1.3 billion in funding for advanced supercomputer and AI initiatives

A Whitehall department has indicated that the financial support promised by the former Conservative government was not included in its budget, and as a result, these projects will not proceed.

Friday, August 2, 2024, 1:

Labour has withdrawn £1.3 billion in funding for technology and artificial intelligence initiatives previously committed by the Conservatives.

The Department for Science, Innovation and Technology (DSIT) announced that the financial support promised by the former Conservative leadership was not included in its budget, and therefore, the funding will not go forward.

The announcement featured an allocation of £800 million towards developing a cutting-edge exascale supercomputer at the University of Edinburgh, which has the capacity to execute a quintillion calculations per second. Additionally, it included an increase of £500 million in funding for the AI Research Resource, a program designed to support the provision of computing resources for artificial intelligence.

The planned allocation of £300 million for the AI Research Resource will proceed as scheduled.

A spokesperson for DSIT stated, "We are fully dedicated to developing technological infrastructure that fosters expansion and prospects for individuals throughout the UK."

In response to numerous financial obligations that lack backing, the government is making tough but essential budgetary choices across all sectors.

"It is crucial for reinstating economic stability and achieving our national objective of growth."

The Labour administration announced plans to evaluate potential investments in computer infrastructure after the creation of its AI Opportunities Action Plan, spearheaded by industry specialist Matt Clifford.

Barney Hussey-Yeo, the founder and CEO of Cleo AI, a startup focused on using artificial intelligence to improve personal financial management, has expressed criticism over the cuts in funding.

He expressed to Sky News, "It's damaging to all AI firms across the UK.

Terminating this project results in the UK lacking a national computational resource for AI training and research.

The number of researchers generated will diminish, the establishment of AI firms will decrease, and as a result, our economic expansion will remain slower compared to that of the US and China.

"Labour must allocate resources to technology and artificial intelligence to spur economic expansion."

He further stated, "Without domestic capabilities or major tech companies, the UK will not become a major force in AI nor will it enjoy the associated economic advantages."

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Andrew Griffith, who serves as the Conservative Party's shadow secretary for science, innovation, and technology, expressed his thoughts on platform X, stating: "Should the Labour Party set lesser goals for the UK's tech industry, or if the new secretary cannot secure equivalent backing for DSIT from the chancellor, that is their prerogative. However, it is misleading for Labour to attribute their shortcomings to the previous administration."

The government has raised its annual research budget to an unprecedented £20 billion for the fiscal year 2024/25. In contrast to the Labour Party, our party pledged in our manifesto to boost this funding by an additional 10%.

"Both AI and exascale computing received a boost from the enhanced funding."

He noted, "It's important to mention that when the election was announced, officials had already informed ministers that the department was expected to spend less than its allocated budget for this financial year."

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The trajectory of the exascale supercomputer initiative is uncertain, following the University of Edinburgh's investment of £31 million in constructing a new section of its high-tech computing center specifically designed to accommodate the supercomputer.

The university's website indicated that the initial stage of implementation was scheduled to start in 2025.

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A representative from the University of Edinburgh stated: "For decades, the University of Edinburgh has been at the forefront of supercomputing in the UK. We are prepared to collaborate with the government to advance this technology's next stage in the UK, aiming to harness its potential for the industrial sector, public services, and the broader community."

It is believed that the principal and vice-chancellor of the university, Professor Sir Peter Mathieson, is actively pursuing an urgent meeting with the technology secretary.

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