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Microsoft to invest $30b in UK AI infrastructure

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Microsoft said Tuesday it will invest $30 billion in artificial intelligence infrastructure in the United Kingdom by 2028, in one of its biggest commitments outside the United States.

A key project is the construction of the country’s largest supercomputer, featuring more than 23,000 advanced GPUs, in partnership with British cloud firm Nscale.

The move comes as U.S. President Donald Trump begins a state visit to Britain, where Prime Minister Keir Starmer is grappling with political turbulence after a cabinet reshuffle and the resignation of Deputy Prime Minister Angela Rayner.

Microsoft President Brad Smith told reporters his outlook on the U.K. has shifted since its competition regulator initially sought to block the company’s $69 billion takeover of Activision-Blizzard in 2023. The deal was later cleared.

“I haven’t always been optimistic every single day about the business climate in the U.K.,” Smith said.

He however added, “I am very encouraged by the steps that the government has taken over the last few years.

“Just a few years ago, this kind of investment would have been inconceivable because of the regulatory climate then and because there just wasn’t the need or demand for this kind of large AI investment.”

The government said late Tuesday that Starmer and Trump are set to sign a new deal on Wednesday aimed at “unlocking investment and collaboration in AI, quantum, and nuclear technologies.”