UK to spend $130M on AI chips amid scramble to buy up computing power

August 21, 2023 Coin Telegraph

UK to spend 0M on AI chips amid scramble to buy up computing power

The chips will be used to set up an AI resource as a recent report said 20% of firms can’t get enough computing power for AI.

British Prime Minister Rishi Sunak is set to spend $130 million (100 million pounds) to buy thousands of computer chips to power artificial intelligence, amid a global shortage and race for computing power.

The Telegraph reported on Aug. 20 that the United Kingdom aims to build an "AI Research Resource" by mid-2024 as part of Sunak’s plan to make the country an AI tech hub.

The government is reportedly sourcing chips from makers NVIDIA, Intel and AMD — and it is understood that the science funding body UK Research and Innovation — which is leading the effort — is in the late stages of ordering 5,000 NVIDIA graphic processing units (GPUs).

However, while $130 million has been allocated to the project, the funds are reportedly seen as insufficient to match Sunak’s AI hub ambition, meaning government officials could pressure for more funding in an upcoming November AI safety summit.

It follows a recent report that said many companies are struggling to deploy AI due to available resources and technical obstacles.

In March, an independent review of the country’s AI computing capabilities said investment in the space is “seriously lagging” behind international counterparts in the United States and European Union.

At the time, less than 1,000 NVIDIA chips were available for researchers to train AI models — a panel recommended the U.K. make available at least 3,000 top-quality chips to meet immediate needs.

On Aug. 16, S&P Global’s global AI trend report found that many firms reported they’re not ready to support AI, due to not having enough computing power, along with challenges managing data and security concerns.

We teamed with S&P Global to launch a global survey of #AI practitioners & decision-makers to see what’s driving or hindering their AI projects.

Today, we published the survey’s findings in this new 2023 Global Trends In AI report. Get the skinny here https://t.co/k9W5AQ9hwg
— WEKA (@WekaIO) August 16, 2023

While it's still early days for AI — S&P senior research analyst Nick Patience said a deciding factor for who will lead in the space will be decided by who can support AI workloads.

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a16z opening London crypto office citing ‘predictable’ environment

June 12, 2023 Coin Telegraph

A16Z

The expansion came following a “productive dialogue” with the United Kingdom’s prime minister and “months of constructive conversations” with U.K. policymakers, a16z’s general partner said.

Venture capital firm Andreessen Horowitz (a16z) is set to open its first office outside of the United States this year, adding to the backdrop of U.S.-based firms seeking greener pastures outside of the country.

Chris Dixon, a16z’s crypto founder and managing partner, cited a “predictable business environment” as one of the main factors behind its decision to expand. The move comes amid a slew of regulatory actions against crypto firms in the United States in recent months.

Big news to share: @a16z is expanding to the UK

We plan to open our first international office in London later this year, and will host the next Crypto Startup School there in 2024.

Why the UK? https://t.co/PQ7GuNEn77
— cdixon.eth (@cdixon) June 11, 2023

Dixon said the decision was finalized after a “productive dialogue” with the U.K. prime minister in addition to “months of constructive conversations” with HM Treasury, U.K. policymakers, and the Financial Conduct Authority. He added:

“We’re thrilled to open our first international office in a jurisdiction that welcomes blockchain technology and is committed to creating a predictable business environment by pursuing regulations that both embrace web3 and protect consumers.”

However, Dixon said the firm remains “heavily invested” in the U.S., and will continue to work with policymakers and regulators to push for more regulatory clarity for crypto start ups.

Rishi Sunak — the U.K.’s new pro-crypto prime minister — attributed the news of a16z’s expansion to having the “right regulation and guardrails” set in place to “foster innovation” while still protecting consumers.

Sunak said he was “thrilled” with a16z’s decision:

“That’s why I am thrilled world-leading investor, Andreessen Horowitz, has decided to open their first international office in the UK – which is testament to our world-class universities and talent and our strong competitive business environment.”

In addition to the new office, a16z has also announced its plan to launch a new “Crypto Startup School” (CSS) program in London in the spring (March to June) of 2024.

The CSS accelerator program will aim to attract U.K. and international entrepreneurs keen on forging a career in Web3.

The most recent CSS program received more than 8,000 applicants, with 26 companies receiving an investment from a16z.

Our next Crypto Startup School will be Spring 2024 in London, & we hope to attract great teams from the region to build web3 projects. Our recent CSS in LA included teams from the UK, US, India, Germany, France, Argentina, Ecuador, & Canada.https://t.co/vxBIPFuSPj
— cdixon.eth (@cdixon) June 11, 2023

The U.K. office will also “work closely with universities” in the U.K. to “provide talent and support” for blockchain-based clubs and to encourage blockchain technology to be taught more in the classroom.

General Partner Sriram Krishnan will be in charge of the new office in London.

Really excited for @a16z’s expanding to the UK with our first international office in London.

And personally excited to be moving there later this year. https://t.co/fJZSfEmHnO
— Sriram Krishnan - sriramk.eth (@sriramk) June 11, 2023

Andreessen Horowitz is the largest venture capital firm in the world, with over $35.8 billion in assets under management (AUM), according to the Sovereign Wealth Fund Institute.

On June 11, a16z led a $43 million Series A fundraise for London-based Gensyn, a blockchain-based marketplace connecting buyers and sellers of computing power.

Some of a16z’s most notable investments in the cryptocurrency space include Coinbase, Avalanche, Compound, Dapper Labs, Matter Labs, OpenSea, Optimism, PROOF, Solana, Uniswap and Yuga Labs.

Cointelegraph reached out to a16z for comment but did not receive an immediate response.

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UK Government Drops Plan to Launch NFT With Royal Mint

March 30, 2023 Bitcoin.com

UK Treasury drops plans for Royal Mint NFT

March 28, 2023 Coin Telegraph

Coin Telegraph

The Economic Secretary of the Treasury told Parliament has confirmed the project has been put on the back burner, but will “keep this proposal under review.”

The United Kingdom has shelved plans to launch a government-backed “NFT for Britain,” which was initially proposed by crypto-friendly Prime Minister Rishi Sunak.

While serving as chancellor of the Exchequer, the equivalent of a chief financial minister, Sunak asked the Royal Mint in April 2022 to create an "NFT for Britain" as part of the government’s “ambition to make the UK a global hub for crypto-asset technology and investment.”

Chancellor @RishiSunak has asked @RoyalMintUK to create an NFT to be issued by the summer.

This decision shows the the forward-looking approach we are determined to take towards cryptoassets in the UK. pic.twitter.com/cd0tiailBK
— HM Treasury (@hmtreasury) April 4, 2022

The project was meant to be launched by the summer of 2022, but has ultimately failed to meet the deadline.

Asked by the chair of the Treasury Select Committee whether there was still a plan for the Royal Mint to issue a nonfungible token on March 27, Economic Secretary of the Treasury Andrew Griffith noted that:

“In consultation with HM Treasury, the Royal Mint is not proceeding with the launch of a Non-Fungible Token at this time but will keep this proposal under review.”

Harriet Baldwin, the chair of the Treasury Select Committee who posed the question in Parliament, was later quoted in a March 26 BBC report saying:

"We have not yet seen a lot of evidence that our constituents should be putting their money in these speculative tokens unless they are prepared to lose all their money.”

"So perhaps that is why the Royal Mint has made this decision in conjunction with the Treasury," she added.

The NFT for Britain concept ultimately appears to be quite vague, as the Royal Mint and Treasury haven’t elaborated on what the NFTs would do and how they would be used.

At the time of the initial announcement, it was simply stated that more details would be announced “soon,” while opponents of the plan, such as Labor MP and Shadow Chancellor Rachel Reeves also questioned Sunak’s priorities, calling it “hopeless.”

“The country is facing a severe cost of living crisis made worse by this chancellor’s choices. This is his priority right now. Hopeless,” she said.

The country is facing a severe cost of living crisis made worse by this Chancellor’s choices.

This is his priority right now.

Hopeless. https://t.co/7onvKmy38K
— Rachel Reeves (@RachelReevesMP) April 5, 2022

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UK Prime Minister Rishi Sunak’s win was a victory for crypto

October 28, 2022 Coin Telegraph

Coin Telegraph

Cryptocurrency fans have a lot to look forward to with the new prime minister, who has a track record of being highly positive about the industry.

A former investment banker turned savvy politician, Rishi Sunak has had an incredibly prolific career in just a short period of time. At only 42, he has served as a member of the United Kingdom’s Parliament, chief secretary to the treasury and chancellor of the exchequer — and now, he’s starting his tenure as prime minister.

As the youngest PM to take office in the U.K. in more than 200 years, Sunak has something else in common with his millennial peers: He is a crypto enthusiast. In fact, as a recent Bank of America survey found, “Younger investors are choosing to allocate significantly more of their portfolios to crypto” than their older counterparts. Additionally, those in the 21–42 age bracket are “more likely to believe crypto offers the greatest opportunities for growth” and allocate an average of 15% of their portfolios to crypto investments, compared with the 2% invested by the over-42s.

The difference is, of course, that Sunak doesn’t just keep his soft spot for cryptocurrencies to himself. Unlike many of his peers, he is actually capable of advancing the industry in entirely new, exciting ways. He can propose legislation, issue regulations and push through new ideas. He can pave the way for the migration from Web2 to Web3 — which will largely be built on technologies like cryptocurrencies but will also include nonfungible tokens (NFTs), blockchain, artificial intelligence and the advent of the metaverse, among others — and potentially make a Web3 hub out of the U.K. in no time.

Make no mistake: This is not pure speculation — he said so himself.

“It’s my ambition to make the U.K. a global hub for crypto-asset technology,” Sunak said as chancellor of the exchequer, highlighting the need to “ensure firms can invest, innovate and scale up in this country.”

As a finance minister serving during former PM Boris Johnson, the Stanford graduate pushed through several crypto-related initiatives as part of an overall agenda aimed at normalizing and advancing the crypto ecosystem in the United Kingdom.

Chancellor @RishiSunak has asked @RoyalMintUK to create an NFT to be issued by the summer.

This decision shows the the forward-looking approach we are determined to take towards cryptoassets in the UK. pic.twitter.com/cd0tiailBK
— HM Treasury (@hmtreasury) April 4, 2022

In 2020, Sunak announced his intention to prioritize financial technology, such as central bank digital currencies (CBDCs) and stablecoins, in order to allow the country to keep up with the times, or, in his words, “ensure the UK financial services industry is always at the forefront of technology and innovation.”

In 2021, he identified the need for pioneering reforms “to support the safe adoption of cryptoassets and stablecoins” and went as far as proposing that the Bank of England explore the possibility of a CBDC. Just this spring, he ordered the Royal Mint to launch a government-backed NFT aimed at showcasing the 1,136-year-old institution’s “forward-looking approach,” and he introduced legislation to “see stablecoins recognised as a valid form of payment in the UK.”

He also — and, perhaps, most importantly — helped formulate the Financial Services and Markets Bill, which the country moved forward with this month. The suggested bill, which proposes “a range of measures to maintain and enhance the U.K.’s position as a global leader in financial services,” is the first step, and a crucial one at that, toward greater clarity around technologies like cryptocurrencies and blockchain and would allow their development to further advance and their hold to strengthen.

If we were to venture a guess as to what the prime minister’s first steps might look like over the coming months, crypto regulation would be a good, if not even safe, bet. “By regulating effectively,” Sunak said, “we can give [the businesses of tomorrow] the confidence they need to think and invest long-term.”

On the heels of the European Parliament Committee finally approving the much-discussed text for the Markets in Crypto-Assets framework and the White House publishing what it described as the “first-ever comprehensive framework for responsible development of digital assets,” seeing the U.K. follow right behind would be a really great sign for the industry as a whole. By 2023, we could be looking at an entirely different global crypto landscape — one that’s more advanced, more regulated, more widespread and more expansive. And that can only ever be a positive thing.

We can look forward to seeing how the youngest PM in British history treats the “youngest” innovation of our time. I wish him good luck, bullish markets and a long journey ahead. Just hodl, Rishi.

Lars Seier Christensen is the founder and chairman of Concordium, a layer-1 blockchain.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Rishi Sunak