The UK government has allocated an additional £120 million to the Sovereign AI Fund. This funding is split equally, with £60 million dedicated to direct investments in domestic AI startups and £60 million earmarked for the Sovereign AI R&D Procurement Scheme.
The procurement scheme, which now totals £160 million, functions by having government departments act as early customers for technology demonstrators. This approach aims to help smaller firms compete by removing traditional barriers related to turnover and track record, while allowing companies to retain their intellectual property.
The Sovereign AI Fund, which saw a 12% increase from its initial £500 million launch in April, is prioritizing physical and industrial AI, including robotics and advanced manufacturing. Portfolio companies include Basecamp Research, which recently secured a $140 million Series C round.
The broader £621 million AI package announced by HM Treasury includes £415 million for security initiatives, such as the National AI Biosecurity Initiative and the AI Security Institute. Additionally, £18 million is designated for a new UK Advanced Chip Design Academy.
The government's strategy also involves the new £100 million AI Biosecurity Lab, which will receive up to $200 million in AI model credits from OpenAI and Anthropic. Partnerships for this lab include Google DeepMind and Basecamp Research.
