Technology secretary Liz Kendall has called on the public to “make AI work for Britain”, as the government announced its first investment under a £500m sovereign AI fund. Speaking on Thursday, Kendall brushed aside fears over job losses and cybersecurity, insisting the UK must “seize” the opportunity offered by artificial intelligence despite concerns highlighted by US startup Anthropic’s new model.
The government has taken an undisclosed shareholding in London-based Callosum, a firm that improves efficiency in computer chips used to train AI models, and a stake in a second unnamed business. This marks the first direct investments from the sovereign AI unit, which operates like a venture capital fund.
Six UK companies will receive access to government-funded supercomputers to develop AI models, in exchange for a right of first refusal on future investments. Recipients include Prima Mente, which is building models to tackle Alzheimer’s; Cursive, an autonomous AI agent startup founded by Google DeepMind alumni; and Odyssey, which develops ‘world models’ simulating reality.
Kendall acknowledged that “people are worried about the risks and what it means for their jobs”, but stressed that AI entrepreneurs believe they can “create jobs”. In January she admitted “some jobs will go” due to automation, but added that new employment opportunities would emerge.
Chancellor Rachel Reeves said the investments ensure internationally competitive companies can “start, scale and stay here in Britain”. The sovereign AI unit was officially launched at Wayve, a self-driving car startup now valued at $8.6bn.
Callosum co-founder Danyal Akarca said the UK was the “natural place” to build his company, citing strong university talent and private AI labs like DeepMind. The government’s move aims to bolster the nation’s AI sector while addressing public concerns.
