OpenAI signs “strategic partnership” with UK

OpenAI and the British government have announced a partnership to “turbocharge” artificial intelligence (AI) development in the UK, as the company’s $500 billion Stargate project in the US reportedly struggles to take off.

The memorandum of partnership – which is not legally binding – outlines plans to expand collaboration on AI between the two sides.

This includes security research, investment in infrastructure such as data centers, and the adoption of the latest technology in public services like education and healthcare.

The signing of the “strategic partnership” coincides with OpenAI’s plans to expand its London office, which was the company’s first international location when it opened two years ago.

The memorandum of understanding was signed by the UK’s Technology Secretary Peter Kyle and OpenAI CEO Sam Altman.

“AI will be fundamental in driving the change we need to see across the country – whether that’s in fixing the NHS [National Health Service], breaking down barriers to opportunity or driving economic growth,” Kyle said in a joint statement.

Meanwhile, Altman praised the British government for being one of the first to recognize the potential of the technology through its AI Opportunities Action Plan, which aims to turn the UK into an AI superpower.

“AI is a core technology for nation-building that will transform economies and deliver growth,” Altman said.

Prime Minister Keir Starmer’s Labour government is betting on AI as a potential driver of economic growth, which it failed to increase meaningfully in its first year.

It said that AI adoption could grow the UK economy by an additional £400 billion ($539 billion) by 2030 and create thousands of new jobs.

Stargate off to rocky start

The pact comes at a time when countries like the UK and Japan, as well as blocs like the EU, are seeking to chart their own course in new technologies and reduce reliance on superpowers such as the US and China.

It also comes as OpenAI and Softbank’s much-publicized $500 billion Stargate project, which promised to supercharge American AI ambitions, is reportedly struggling to take off.

Japanese billionaire Masayoshi Son, who owns Softbank, and Sam Altman announced the project with President Donald Trump in the White House six months ago, but the newly formed venture is yet to complete a single deal for a data center, The Wall Street Journal reported.

While the companies pledged to invest $100 billion “immediately,” the project has now set a more modest target of building a small data center by the end of 2025, likely in Ohio, people familiar with the matter told the newspaper.

Despite a rocky start, both Altman and Son say that their efforts are going well, with OpenAI’s boss describing it as a “wonderful partnership.”