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technology9h ago
UK hits back at OpenAI after Stargate project shelved
- UK AI Minister Narayan said OpenAI paused Stargate UK due to its internal financing context, not changes in energy pricing or regulation.
- OpenAI publicly stated Stargate UK was paused because of regulatory and energy-cost obstacles to the infrastructure project.
- UK government plans to support AI growth include a £500 million Sovereign AI Unit to fund startups and provide compute access.
- Chi Onwurah, Labour MP, urged viewing OpenAI’s decision within the wider global AI landscape and questioned the company’s business model.
- Hugh Milward, Microsoft UK VP, cited energy costs, grid delays, and copyright rule changes as factors affecting AI investment in the UK.
- UK ministers aim to reduce grid delays and energy costs to bolster data-center compute within the country.
- OpenAI has faced investor scrutiny as it pursues strategies to stave off competition while expanding its footprint.
- OpenAI declined to comment on the Stargate UK pause when contacted by reporters.
- UK government frames Stargate as part of a push to keep core compute capabilities onshore to support domestic AI firms.
- Stargate UK was introduced as part of OpenAI’s international infrastructure initiative including an AI Growth Zone in the North East of England.
- The interview and reports underscore the tension between national strategy and a global AI company’s financing choices.
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