The United Kingdom has signed a new strategic partnership with OpenAI, the maker of ChatGPT, to strengthen collaboration on AI safety research and explore investments in British infrastructure, including data centres, Reuters reported.
The agreement is part of Prime Minister Keir Starmer’s broader initiative to transform the UK into a global artificial intelligence superpower. The Labour government sees AI as a key driver of economic growth, with projections suggesting a potential 1.5% annual productivity boost—equivalent to £47 billion ($63 billion) in added value over the next decade.
“AI will be fundamental in driving the change we need across the country—whether that’s in fixing the NHS, breaking down barriers to opportunity, or driving economic growth,” said Technology Secretary Peter Kyle. “This partnership will see more of [OpenAI’s] work taking place in the UK.”
Under the deal, OpenAI may expand its London office and explore applications for AI in critical public sectors such as healthcare, justice, defence, security, and education.
OpenAI CEO Sam Altman praised the UK government’s forward-looking approach, citing the “AI Opportunities Action Plan” as the first major framework to recognize and harness AI’s transformative potential. That plan, launched by Starmer’s administration, aims to position Britain as a leading force in responsible AI innovation.
The UK has committed £1 billion toward expanding public computing infrastructure, with plans to increase computing capacity twentyfold within five years. This comes as the U.S., China, and India take the lead in global AI development, putting pressure on European nations to accelerate their strategies.
The partnership marks a shift for OpenAI in the UK, where its ties to Microsoft once drew scrutiny from the country’s competition regulator. Now, it signals a growing alignment between government policy and AI industry leadership.
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