The idea of a ‘special relationship’ between the US and the UK goes back nearly 100 years.
But President Trump’s visit in September, and the accompanying announcement of significant investment from US firms into UK tech, felt like a window into what the future of that relationship will look like – a world class tech alliance.
Indeed, the “Technology Prosperity Deal” is a clear signal that tech is now the cornerstone of the UK-US partnership. This agreement shifts the imprecise relationship towards a more strategic focus on global innovation, cementing the UK as a vital partner in developing foundational technologies of the 21st century.
Clearly, there are mixed views of the Trump administration and his retinue of Big Tech CEOs. It’s therefore worth looking closely at what this investment really means for the UK economy, how businesses can seize its opportunities, and how – despite this influx of foreign capital – the UK can retain its identity.
Despite its global standing, the UK needs investment
The UK is the third largest tech economy in the world, famed for its innovation, talent and entrepreneurship. Yet for all its strengths, there are major systemic issues that prevent the UK from making the most of its world-class ecosystem.
As Nvidia CEO Jensen Huang said at London Tech Week, the UK has “one of the richest AI communities anywhere on the planet,” but it is “without its own infrastructure”. Additionally, UK tech companies often believe there are better opportunities to scale overseas, looking to markets like the US, where there is a greater depth of scaling capital.
This unprecedented injection of funding into the UK goes a long way to addressing these challenges. Not only will the new deal deliver infrastructure improvements to key emerging industries, but also direct investment into some of our most innovative companies.
Microsoft alone has committed a record-breaking $30bn investment for AI infrastructure over the next four years, its largest financial commitment ever to the UK, and Nvidia has also pledged £11bn towards the AI ecosystem.
This provides critical computing power and infrastructure that domestic funding alone could not deliver.
However, there is a prevailing fear in the UK that the involvement of Big Tech puts us increasingly at the mercy of American tech companies like OpenAI, Meta and others. Some, including Meta’s ex-President for Global Affairs Nick Clegg, have critiqued the investment, labelling it a distraction from homegrown tech companies.
Catalyst for homegrown innovation
But this fear ignores the track record of similar investment into the UK.
Take the legacy of Google’s acquisition of DeepMind, for example. The wealth and expertise generated by that deal were reinvested by founders and early employees, fuelling a new wave of British startups. It also supported London’s transition into a global AI hub, attracting similar founders, innovators and entrepreneurs creating AI tech.
This demonstrates how American investment can act as a powerful catalyst, providing the initial boost that allows talented UK innovators to build, succeed, and reinvest their knowledge and capital back into the community, creating a cycle of growth.
There should be no fear that this investment will “defang” the UK’s tech economy, rather it should be seen as a vote of confidence in the UK’s tech prowess, providing the opportunity to innovate and grow.
Retaining a British identity
But it’s also vital that this investment and partnership does not sacrifice what makes Britain special.
For instance, it’s vital that the UK continues to push for Big Tech to play its part in providing funding for the training programmes they stand to gain the most from.
As companies in the US continue to pull back on DEI commitments, it also means ensuring the UK remains a home for those who believe in improving equity and representation.
Ultimately, championing homegrown entrepreneurs and nurturing an ecosystem with innovation at its core must remain the UK’s priority. The future of UK tech remains in our hands – the challenge now for British innovators is to be proactive and not simply defer to the influence of others.
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