David Vance SubstackRead More
There’s a lot of hype about today regarding AI investment in the UK from Microsoft and how it will help “transform” the UK into an AI superpower.
Major US tech firms have pledged tens of billions of pounds worth of investment in the UK, with the boss of the world’s leading chipmaker, Nvidia, predicting it will make the country an “AI superpower”.
The biggest single investment comes from Microsoft, which has announced a $30bn (£22bn) spending package – its largest ever outside the US. It is part of a £31bn agreement, dubbed the “Tech Prosperity Deal”, between the UK government and several US tech giants as part of President Donald Trump’s second state visit to the UK.
The deal will see Google, Nvidia and others invest in British-based infrastructure including data centres as well as the creation of a new supercomputer in Essex. “This is the week that I declare the UK will be an AI superpower,” Nvidia boss Jensen Huang told the BBC.
OK, Jensen, let’s just take a look at that claim as it a big one.
For starters, AI requires cheap and abundant electricity. The UK has the 4th most expensive electricity cost per kilowatt/hour in Europe. Our cost is 29.7 cents K/wh. The EU average is cheaper at 28.7 cents K/wh. Sweden is 15 cents K/wh. In the USA, it’s 14.8 cents K/wh. So are not remotely competitive. And that’s BEFORE Red Ed Miliband completely messes up our energy infrastructure!
So how on EARTH can the UK be an AI superpower with such high energy costs?
It doesn’t compute!
