Jensen Huang appeared at London Tech Week: The UK's AI environment is in a "Goldilocks" state, but lacks computing infrastructure

NVIDIA CEO Jensen Huang sent a signal to the UK in London: the country is sitting on a gold mine of artificial intelligence (AI) talent but needs more critical computing infrastructure to unleash their potential.

At the opening ceremony of London Tech Week on Monday, Huang engaged in a dialogue with UK Prime Minister Keir Starmer, praising the UK for having excellent conditions for AI prosperity, with outstanding universities and research communities, along with the world's third-largest AI venture capital, providing a good environment for AI companies to thrive, describing it as being in a “Goldilocks” state.

However, this praise was followed by a ruthless warning. Huang bluntly stated:

This is the largest AI ecosystem in the world, yet it lacks its own infrastructure.

In response to the support for AI, London quickly reacted. Prime Minister Keir Starmer announced on the spot that an additional £1 billion would be allocated, aiming to “expand our computing power by 20 times” and improve the infrastructure needed for building AI in the UK. The UK government also announced a partnership with NVIDIA to help train more AI-skilled talent and expand related research.

Is an AI computing infrastructure race about to begin in Europe?

Huang's warning is not only aimed at the UK but also reflects the predicament of Europe in the AI competition. For a long time, Europe has struggled to compete with the US and China in fostering disruptive generative AI companies and building data centers.

Huang is currently touring the European continent this week, revealing that there are “countless AI factories being planned” in the region, and he plans to speak at VivaTech in Paris, visiting and meeting with leaders from the UK, Germany, France, and Belgium, hinting that an infrastructure race is about to begin in Europe.

“AI is not just a technology; it is also an infrastructure because it impacts so many industries at the same time.” Huang compared AI to electricity, believing it will become the infrastructure that defines the future industrial landscape. “This technology is so widespread and transformative for every industry that it will be regarded as infrastructure, just like electricity.”

Additionally, the UK's Financial Conduct Authority announced on Monday that it would establish a so-called regulatory “sandbox,” allowing financial companies to experiment with NVIDIA's technology for AI. This mechanism enables companies with new ideas at the intersection of finance and technology to test before fully launching their products.

Meanwhile, capital is voting with its feet. Startup lending institution Liquidity announced it would establish its European headquarters in London and pledged to invest £1.5 billion in UK companies over the next five years