Breaking AI & Tech News Analyzed

The UK government has taken a significant step in boosting its tech sector by announcing its first investment in a £500m sovereign AI fund. Technology Secretary Liz Kendall has urged the public to 'make AI work for Britain', despite concerns about job disruption and cybersecurity risks.Kendall acknowledged that 'people are worried about the risks and what it means for their jobs', but emphasized that AI entrepreneurs believe they can create new employment opportunities. The government has taken an undisclosed shareholding in London-based Callosum, a company that helps different types of computer chips work together efficiently to train and operate AI models.The investment is part of a broader effort to support national AI champions and ensure that internationally competitive companies can start, scale, and stay in Britain. The sovereign AI unit, designed to act like a venture capital fund, has also provided access to a network of government-funded supercomputers to help six UK companies develop AI models.These companies include Prima Mente, which is building 'biological foundation models' to tackle diseases like Alzheimer's; Cursive, a company developing autonomous AI agents founded by Google DeepMind alumni; and Odyssey, which develops 'world models', an approach to AI where systems interact with a convincing simulation of the real world.Rachel Reeves, the chancellor, said that by supporting national AI champions, the UK could ensure that internationally competitive companies can 'start, scale and stay here in Britain'. The investment is seen as a key step in establishing the UK as a leader in the AI sector.