The new Labour government has made a controversial decision to shelve £1.3bn of funding promised by the Conservatives for tech and Artificial Intelligence (AI) projects, as reported by the BBC.
This includes £800m earmarked for the creation of an exascale supercomputer at Edinburgh University and an additional £500m for the AI Research Resource, which provides computing power for AI projects. Both funds were announced less than a year ago.
The Department for Science, Innovation and Technology (DSIT) stated that the money was pledged by the previous administration but was never allocated in its budget. The Conservatives, on the other hand, claimed that the department had underspent during their leadership.
Secretary of State Peter Kyle has notified those affected by the decision, stating that the government is making necessary spending cuts to address unfunded commitments and restore economic stability.
Despite the funding cut, DSIT emphasized its commitment to building technology infrastructure in the UK, stating that difficult decisions are being made to ensure national growth.
The future of the Edinburgh exascale supercomputer, which was considered a priority project by the previous government, is now uncertain. The university had already invested £31m in preparation for the supercomputer, which was expected to be 50 times faster than any current computers in the UK.
The tech sector is a significant part of the UK economy, with a market value of $1.1 trillion (£863bn) in the first quarter of 2024, according to Tech Nation. The decision to shelve the promised funding has raised concerns about the impact on innovation and growth in the tech industry.
In response to the funding cut, the university spokesperson expressed readiness to work with the government to support the next phase of technology development in the UK, highlighting the potential benefits for industry, public services, and society.
DSIT recently appointed Matt Clifford, an organizer of the AI Safety Summit, to develop an action plan for identifying new AI opportunities, signaling the government’s continued interest in advancing technology despite the funding setback.
