OpenAI pulls out of landmark 31bn UK investment package
Briefly

OpenAI pulls out of landmark 31bn UK investment package
"OpenAI's spokesperson stated, 'We see huge potential for the UK's AI future. We continue to explore Stargate UK and will move forward when the right conditions such as regulation and the cost of energy enable long-term infrastructure investment.'"
"The Stargate project was intended to support the UK in developing sovereign compute infrastructure, allowing government and institutions to run AI models domestically, which is crucial for data security."
"High energy costs, exacerbated by geopolitical tensions, threaten to delay or derail AI datacentre projects globally, with the UK's industrial electricity prices already the highest in Europe."
OpenAI has halted the Stargate UK project, which aimed to enhance the UK's AI capabilities, due to high energy costs and regulatory issues. The project was part of a larger UK-US AI deal, with US companies committing significant investments to the UK's tech sector. A supercomputer, scheduled for 2026, remains unfinished, and Nscale, the firm responsible for its construction, has not previously built a datacentre. OpenAI expressed potential for the UK's AI future but emphasized the need for favorable conditions for long-term investment.
Read at www.theguardian.com
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