The British government has entered a strategic partnership with OpenAI, the American firm behind ChatGPT, to enhance collaboration on artificial intelligence safety research and explore major investments in UK-based AI infrastructure, including data centres.

Announced on Monday, the agreement marks a significant step in the UK’s ambition to become a global leader in AI development. “AI will be fundamental in driving the change we need across the country – whether that’s fixing the NHS, breaking down barriers to opportunity, or driving economic growth,” said Peter Kyle, Secretary of State for Technology.

He described OpenAI as a critical partner in this mission, stating that the new collaboration would lead to “more of their work taking place in the UK.”

The partnership comes as the UK pushes forward with a £1 billion plan to expand its computing infrastructure for AI, aiming to boost public compute capacity twentyfold over the next five years. With the U.S., China, and India leading the global AI race, the move is seen as part of Britain’s effort to close the gap and secure its position as a competitive force in the sector.

OpenAI, which has previously faced regulatory scrutiny in the UK due to its ties with Microsoft, is expected to grow its London presence as part of the partnership. The collaboration will also explore how AI can be applied in key public sectors such as justice, defence, national security, and education.

OpenAI CEO Sam Altman commended the UK for its proactive approach to AI policy, applauding Prime Minister Keir Starmer’s “AI Opportunities Action Plan” — a flagship initiative designed to transform Britain into an AI superpower.

Facing economic pressure in its first year in office, the Labour government sees AI as a key driver of productivity. Officials estimate the technology could boost economic output by 1.5% annually, potentially adding £47 billion to the UK economy each year over the next decade.