Is OpenAI serious about its £30B UK data center project?
What's the story
OpenAI, the company behind ChatGPT, had announced plans for Stargate UK, a multi-billion-pound data center project in the United Kingdom. The initiative was seen as a major milestone in US-UK tech collaboration. However, the plans were put on hold in April due to concerns over regulation and high energy costs. Now, questions are being raised about the authenticity of this ambitious project and its touted £30 billion investment.
Project scrutiny
Major US-UK AI collaboration was 'press release'
The Guardian has revealed that OpenAI may not have even visited one of the key sites for Stargate UK. This raises questions about one of the UK's most-hyped AI projects and suggests that a major US-UK AI collaboration was little more than a press release. The investigation also revealed many deals to integrate AI into Britain's economy were "phantom investments."
Development details
Project announced during Trump's visit to London
Sources familiar with the Stargate UK project said the government approached UK firm Nscale and OpenAI just before Donald Trump's visit to the UK last year. They were asked to agree to develop a site at Cobalt Park, a business park in North Tyneside. The project was announced amid high-profile US-UK tech deals during Trump's September visit to London, mirroring a similar initiative in America where OpenAI pledged $500 billion for AI leadership.
Partnership
OpenAI, Nscale didn't meet local authorities at North Tyneside site
Stargate UK's plan was for OpenAI to work with Nscale, which is building a supercomputer in Essex, and NVIDIA, an AI chip maker. The project involved developing infrastructure at sites across Britain. The most notable of these was the proposed data center at Cobalt Park, which was designated as an "AI growth zone" during Trump's UK visit. However, a Freedom of Information (FoI) request revealed that neither OpenAI nor Nscale met local authorities at the North Tyneside site.
Project status
Site didn't have a grid connection
An FoI request from the UK's National Energy System Operator revealed that the Stargate UK site didn't have a grid connection. Instead, it proposed an alternative power solution, which was redacted in the application returned to The Guardian. This has led to doubts about whether the project will come to North Tyneside at all. A government spokesperson said they are committed to creating conditions for investment in AI and data center infrastructure in the UK.