Amid an increasingly competitive global AI atmosphere, U.K. announced the setting up of a £500 million Sovereign AI Fund aimed at backing homegrown AI founders to drive growth, scale fast and compete globally.

Announced by Liz Kendall, Secretary of State for Science, Innovation, and Technology, on Thursday night, the U.K. Sovereign AI Fund will provide VC funding along with access to UK’s largest supercomputers and other government assistance to indigenous AI startups.

According to Kendall, AI firms pioneering drug discovery and supercomputing will be given priority in the first phase of funding. The UK government has already announced a partnership with AI infrastructure startup Callosum under the initiative.

Speaking at the launch event hosted by Wayve, Kendall described the initiative as a critical step in securing Britain’s technological future. She emphasized that artificial intelligence is “the most powerful technology of our lifetime” and said the UK must become a creator of AI, not just a user.

“Sovereign AI is providing fully funded access to the UK’s largest supercomputers, it is fast tracking global talent – with super priority visa decisions within one working day, and up to 10 visas for R&D talent completely cost free. And for any startup we work with that wants to ‘flip’ to become a UK Limited Company, SovAI will pay your legal fees too,” said Kendall.

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