Trump and Starmer to sign 'generational' UK-US tech deal

Some of the biggest US technology companies have pledged billions of pounds of investment to turbocharge Britain's artificial intelligence (AI) industry, as the two countries announce a landmark technology deal.

Nvidia, Microsoft, Open AI and Google made a flurry of announcements to coincide with President Trump's state visit to the UK. They include plans to build data centres and invest in AI research and engineering.

Money latest: Tax warning over state pension Sir Keir Starmer described the agreement, which both leaders will sign over the coming days, as "a generational step change" in Britain's relationship with the US. The deal will see both countries cooperate on AI, quantum computing and nuclear energy, with investment in modular reactors revealed earlier this week.

The prime minister said it was "shaping the futures of millions of people on both sides of the Atlantic, and delivering growth, security and opportunity up and down the country". The government said the deal would deliver thousands of jobs, with a new AI Growth Zone in the North East of England earmarked for 5,000 jobs.

The region will host a new data centre developed in partnership with ChatGPT developer OpenAI, the US chip giant Nvidia and the British data centre company Nscale. The UK government will supply energy for the project, which will be based in Blyth.

Jensen Huang, chief executive of Nvidia, who has previously drawn attention to Britain's inadequate levels of digital infrastructure, said: "Today marks a historic chapter in US-United Kingdom technology collaboration. "We are at the Big Bang of the AI era - and the United Kingdom stands in a Goldilocks position, where world-class talent, research and industry converge." The Blyth data centre is part of Stargate, Open AI's infrastructure project to build large data centres across the US.

The company has also developed sites in Norway and the UAE. Nvidia, which provides the graphic processing chips (GPUs), expects to generate $20bn (£14.6bn) by the end of this year from "sovereign" deals with national governments over the coming years.

Sam Altman, OpenAI's chief executive, said: "The UK has been a longstanding pioneer of AI, and is now home to world-class researchers, millions of ChatGPT users and a government that quickly recognised the potential of this technology. "Stargate UK builds on this foundation to help accelerate scientific breakthroughs, improve productivity, and drive economic growth." Read more from Sky News:How most people are using ChatGPTNHS medicines bill 'should rise to preserve UK drug industry' Microsoft also pledged £22bn, its largest ever investment in the UK, to expand data centres and construct the country's largest AI supercomputer.

Meanwhile, Google owner Alphabet pledged £5bn to expand its data centres in Hertfordshire and fund its London-based subsidiary DeepMind, which uses AI to power cutting edge scientific research. The company was founded in Britain and acquired by Google in 2014.

Other investments include £1.5bn from AI cloud computing company CoreWeave and £1.4bn from Salesforce..