Google announces £5B AI investment in UK
What's the story
Google's parent company, Alphabet, has announced a massive £5 billion ($6.8 billion) investment in artificial intelligence (AI) in the United Kingdom. The investment will be used for infrastructure and scientific research over the next two years. The announcement comes just before US President Donald Trump's state visit to the UK.
Expansion plans
Investment to expand data center and fund AI research
The investment by Alphabet will be used to expand a data center in Hertfordshire. It will be air-cooled instead of water-cooled, with heat captured and redeployed to heat schools and homes. Google has also signed a deal with Shell to provide "95% carbon-free energy" for its UK investments. Alphabet will even fund "pioneering" AI research in science and healthcare through its Google DeepMind operation. The total investment will help to create 8,250 jobs annually in the UK, per the company.
Strategic relationship
'Investment will advance science, social services'
Ruth Porat, Chief Financial Officer at Alphabet and Google, emphasized the "profound opportunities in the UK" for their "pioneering work in advanced science." She also highlighted a special technology relationship between the US and UK. Porat said while there are risks to mitigate, there's also tremendous opportunity for economic growth, social services, and advancing science through this investment.
Government support
More work needed to capitalize on AI potential benefits
Porat said the UK's AI Opportunities Action Plan has helped facilitate this investment. However, she stressed that more work is needed to capitalize on the potential benefits of the AI boom. The US administration had previously urged the UK to ease its Digital Services Tax on companies like Google during talks earlier this year.