UK sets out funding for AI security and homegrown firms

The UK government has announced an AI investment package aimed at strengthening national security, helping domestic companies expand and preparing workers for economic change. Chancellor John Healey plans to make AI part of his Budget, with funding intended to reduce reliance on overseas technology and spread benefits across the country.

A £165m National AI Biosecurity Initiative includes £100 million for a new AI Biosecurity Lab to detect and monitor biological threats. OpenAI and Anthropic will support the lab with up to £200 million in AI model credits, alongside partnerships with Google DeepMind and Basecamp Research. The AI Security Institute will receive an additional £120 million for testing and research.

Cybersecurity measures include £60 million for a National Cyber Shield using agentic AI and a £70 million National Exposure and Real-Time Vulnerability (NERV) Centre to identify weaknesses across critical infrastructure and the economy. Domestic capabilities will receive support through an additional £60 million for the Sovereign AI Fund, including expansion into physical and industrial AI, and £18 million for a UK Advanced Chip Design Academy.

The plans also include £30m for local AI partnerships involving councils, businesses and education providers. A new cyber and AI training centre in Manchester will develop government expertise. The government has earmarked £10 million per year to understand how AI will reshape jobs and industry and help prepare for the transition.