NVIDIA deepens its layout in the UK, Jensen Huang: UK AI talent is envied globally, but the infrastructure is lacking

According to the Zhitong Finance APP, NVIDIA (NVDA.US) CEO Jensen Huang praised British artificial intelligence talent as "the envy of the world," particularly highlighting the country's researchers, universities, and startups. However, he also pointed out that the UK needs more infrastructure to unleash the potential of this talent.

The Labour Party leader engaged in a dialogue with billionaire Huang in London on Monday to commemorate their cooperation: NVIDIA will help the UK cultivate more talent in the field of artificial intelligence and expand research work at UK universities and the company's AI laboratory located in Bristol, England.

During the opening event of London Tech Week on Monday, Huang stated in a conversation with UK Prime Minister Keir Starmer, "The UK is in a 'Goldilocks state,' with excellent conditions for the flourishing of AI companies. However, it has the largest AI ecosystem in the world but lacks the local infrastructure to match it."

Artificial intelligence models behind generative tools like ChatGPT require massive data centers to provide strong computing power support, both during the training and construction phases and when processing millions of user queries globally. These data centers, in turn, rely on sufficient electricity, water resources, and other supporting infrastructure.

Starmer has recognized the necessity of related support and announced on Monday an additional £1 billion (approximately $1.4 billion) in funding to "increase the UK's computing power by 20 times" while improving the infrastructure needed for local AI development.

The UK government also officially announced a partnership with NVIDIA to help cultivate more talent skilled in artificial intelligence and expand related research.

Europe has long struggled to compete with the US and China in nurturing breakthrough generative AI companies and advancing data center construction. Huang is visiting multiple locations in Europe this week, mentioning that the region "is planning countless AI factories." He is expected to deliver a speech at the VivaTech technology exhibition in Paris on Wednesday and will visit the UK, Germany, France, Belgium, and meet with leaders from various countries.

Huang emphasized, "For the UK, there is something particularly special and full of great opportunities: artificial intelligence is both a technology and a form of infrastructure because it can profoundly impact many industries simultaneously. Given the broad coverage of this technology and its transformative effect on all industries, in the future, it will be regarded as infrastructure, just like electricity."

The UK Financial Conduct Authority also announced on Monday that it will establish a so-called "regulatory sandbox," allowing financial institutions to conduct AI experiments using NVIDIA technology. This sandbox mechanism enables innovative companies in the fintech crossover field to test their products and services before a full launch.

Additionally, the startup lending institution Liquidity announced it will establish its European headquarters in London and commit to investing £1.5 billion in related companies over the next five years.

Currently, technology and artificial intelligence have become the core focus of Starmer's government in promoting economic growth plans. At the start of this crucial week, Starmer is eager to highlight a positive vision for technology and growth. This week, the Labour government will advance plans to invest hundreds of billions of pounds during this parliamentary term Due to anticipated cuts in other areas, Chancellor of the Exchequer Rachel Reeves is under pressure from the opposition and some colleagues within her party.

Reeves will release a spending review on Wednesday, prioritizing the much-valued yet struggling National Health Service (NHS) while strengthening the UK's military capabilities. She will also confirm large-scale capital investments (which are not subject to her fiscal rules), but day-to-day spending will be squeezed, with some departments facing actual cuts.

Downing Street is focused on growth plans rather than spending constraints, having confirmed last weekend an £86 billion (approximately $116 billion) funding for the UK science sector, covering pharmaceuticals, green energy, military technology, and more. On Monday, Starmer will announce a £18.7 million plan to enhance AI skills for UK workers and students.

The UK government states that this initiative has the support of major tech companies such as IBM (IBM.US), QinetiQ, Microsoft (MSFT.US), as well as British Telecom (BT) and defense manufacturer BAE Systems.

To advance the UK's technological development, Starmer hosted CEOs and investors, including Eric Schmidt and Demis Hassabis, at his country residence Chequers last weekend