The world's fourth-largest corporation, Google owner Alphabet, has announced a significant £5bn ($6.8bn) investment focused on artificial intelligence (AI) in the UK, slated for infrastructure development and scientific research over the next two years. This announcement comes right before U.S. President Donald Trump’s state visit, indicating a bolstered economic relationship.
In an exclusive interview with BBC News, Google's Chief Investment Officer, Ruth Porat, emphasized the 'profound opportunities' in the UK for pioneering work in advanced science and technology. The investment includes plans for a $1bn (£735m) data center in Waltham Cross, Hertfordshire, which is set to officially open with involvement from Chancellor Rachel Reeves.
This strategic investment will expand the existing data center and significantly benefit London-based DeepMind, renowned for utilizing AI to transform scientific research. Porat remarked, ''Now there is a US-UK special technology relationship... yet, we need to navigate downside risks while capturing tremendous opportunities in economic growth and social services'.
The recent UK government's AI Opportunities Action Plan has played a role in facilitating this investment, with Porat acknowledging the ongoing need for work to fully realize the upside of the AI boom. She expressed concerns that simply using AI for efficiencies could impede significant economic benefits.
With hopes for further multi-billion-dollar investments from U.S. corporations expected shortly, analysts have noted a strengthening of the pound, attributed partially to anticipated interest rate adjustments and increased U.S. investments.
Google's remarkable rise has seen it become the fourth company valued over $3 trillion, a title it now shares with tech giants Nvidia, Microsoft, and Apple. After recent US court decisions declined to order the breakup of the company, Google's share price surged.
Google aims to position itself as an 'AI First' company, addressing global concerns about data centers' energy usage and environmental impacts. The new facility plans to utilize air-cooling instead of water-cooling, and Porat mentioned that excess heat could be redirected to heat surrounding schools and homes, showcasing their commitment to sustainability.
Faced with the implications of AI on employment, Porat highlighted Google's proactive efforts to address challenges posed by AI in the job market, indicating that AI would complement rather than replace human jobs in sectors like healthcare. She encouraged individuals to embrace AI as a collaborative tool rather than fear its potential.