Microsoft AI London’s announcement that it will be building an AI hub in London is mightily significant. The move forms part of Microsoft’s £2.5 billion investment proposals for the UK, which will include bringing 20,000 of the most advanced GPUs to the country by 2026.

The aim is to drive pioneering work to advance state-of-the-art language models and their supporting infrastructure, and to create world-class tooling for foundation models, collaborating closely with AI teams across Microsoft and with partners, including OpenAI.  

AI Talent Pool

Mustafa Suleyman, EVP and CEO of Microsoft AI, commented:  

“I’m deeply aware of the extraordinary talent pool and AI ecosystem in the UK, and I’m excited to make this commitment to the UK on behalf of Microsoft AI.

In the coming weeks and months, we will be posting job openings and actively hiring exceptional individuals who want to work on the most interesting and challenging AI questions of our time.”

This adds Microsoft to a growing list of large tech firms who have set up significant AI units in the capital amid an explosion of interest in the technology from investors and consumers. Last year, ChatGPT maker Open AI established its first overseas office in London, while US firm C3.ai relocated its European headquarters from Paris to London and billion-dollar American drug discovery business Recursion set up an AI unit in Kings Cross.

“Microsoft AI opening a new hub in the heart of London is another feather in the cap of the capital’s burgeoning tech ecosystem. It should be seen as a huge vote of confidence for the UK from one of the global tech industry's major players," said Russ Shaw, founder of campaign group Tech London Advocates.

AI Safety

Microsoft has been pushing for the government to develop a broader legal and regulatory framework for AI, and Suleyman said the decision to open the new hub has been influenced by the UK government's approach to AI safety.

A landmark agreement on artificial intelligence (AI) between the US and the UK will see both countries align their approaches to tackling the new risks that the technology poses.  

The UK and US AI safety institutes have laid out plans to build a common approach to AI safety testing and intend to perform at least one joint testing exercise on a publicly accessible model. The agreement also proposes sharing a pool of experts between the institutes.

"This is great news for Microsoft AI and for the UK. As a British citizen, born and raised in London, I’m proud to have co-founded and built a cutting-edge AI business here,” Suleyman said. “I know - through my close work with thought leaders in the UK government, business community and academia - that the country is committed to advancing AI responsibly and with a safety-first commitment to drive investment, innovation and economic growth."

Yet there have also been words of caution: 

"Without consideration for tech team diversity AI innovations have the potential to be biased and flawed. Microsoft must assemble a diverse team at its new London hub to avoid history repeating itself” 

Becs Roycroft, VP of global emerging talent and client operations at Wiley Edge, said, referring to Microsoft's PR nightmare with its Tay AI bot. (Tay AI presented misogynist and racist outcomes after using social media content for its programming).

Europe's Largest AI Funding Deal

Substantial investment in AI start-up Wayve marks Europe’s largest AI funding deal to date.  Prime Minister Rishi Sunak said this “anchors the UK’s position as an AI superpower.”

The $1.05bn funding round, which includes investment from SoftBank Group as well as Nvidia and Microsoft, will enable the British company Wayve to develop and launch the first “embodied AI” technology for self-driving vehicles in the UK.

This embodied AI system, called AV2.0, allows vehicles to learn while driving in real-world environments, avoiding the need for mapping and laser-based sensors. 

Rather than launching its own fleet of vehicles, Wayve’s approach is to partner with carmakers to integrate its embodied AI system into their existing vehicles. 

According to the Co-founder & CEO, Alex Kendall: 

“Our collaboration with Microsoft and Nvidia, leveraging Microsoft Azure to scale our AI models and advanced embedded computing platforms like Nvidia Drive Orin and Thor, underscores our commitment to leading the AI-driven transformation in automotive technology.”
 

Google Investment

Following Microsoft’s announcement, Google shared news of its $1 billion investment in a data centre located in Waltham Cross, Hertfordshire. The site spans 33 acres and represents more than a hefty investment in the UK’s technology infrastructure; it also contributes to generating employment, offering both construction and technical positions to the local populace.

Sustainability is a key focus for Google, extending beyond just technological advances. The company is dedicated to operating all its data centres on carbon-free energy by 2030. Plans for the new facility include an air-based cooling system and provisions for using off-site heat recovery, showcasing Google’s forward-thinking approach to sustainability and energy efficiency.

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