OpenAI's ambitious project in the UK, known as Stargate UK, was anticipated to be a landmark development, signifying a significant advancement in the partnership between the United States and the United Kingdom in technology. The initiative, pegged at several billion pounds, promised to enhance AI infrastructure in the UK.
However, in April, the project was put on hold due to worries regarding regulatory environments and soaring energy costs. Recent revelations from the Guardian indicate that OpenAI has not conducted any visits to one of the project's crucial locations. Furthermore, the potential investment of £20 billion, out of a total £30 billion investment touted by the UK government, seems to be largely speculative.
These developments cast doubt on the much-publicized AI initiative, suggesting that what was meant to be a hallmark of US-UK AI collaboration might have been exaggerated. A previous investigation by the Guardian uncovered that multiple announced investments aimed at integrating AI into the UK economy were nonexistent.
Sources familiar with the Stargate UK setup indicated that the UK government reached out to the firm Nscale and OpenAI before Donald Trump's visit to the UK last year, urging them to collaborate on the Stargate UK site at Cobalt Park in North Tyneside. According to one informant, the announcement was aimed at generating a significant headline.
Stargate UK was launched amid a cascade of high-profile US-UK tech collaborations coinciding with Trump's September visit to London, paralleling the Stargate AI project in the US where OpenAI pledged a staggering $500 billion for AI advancement.
In contrast, Stargate UK's aspirations were more restrained, involving partnerships with Nscale, which is working on a supercomputer in Essex, and Nvidia, a leading AI chip manufacturer, to establish infrastructure at various UK locations. The prominent site was the proposed datacentre at Cobalt Park, designated an “AI growth zone” during Trump's visit.
A response to a Freedom of Information request indicated that neither OpenAI nor Nscale has engaged with local authorities in North Tyneside. Only Nvidia made an appearance at the North East combined authority's meetings, and that was five months after Trump's UK visit. An insider claimed that Nscale was caught off-guard by the expectation to support the Stargate project, viewing it more as a government public relations effort than a viable initiative.
When asked about OpenAI's site visit, a company representative pointed to an earlier statement about withdrawing from Stargate UK: “We see huge potential for the UK’s AI future…We are exploring Stargate UK and will proceed when favorable conditions, like regulatory frameworks and energy costs, allow for long-term investment.” Nscale confirmed a visit from its chief commercial officer to North Tyneside but failed to verify any meetings with local officials.
As per the government press release, the AI growth zone intended for Stargate UK was “set to” generate £30 billion in investments—with £10 billion already promised by Blackstone, which is developing a separate datacentre in the region. The government noted a potential for an additional £20 billion from other future partners.
In follow-up inquiries regarding the £20 billion figure and the identity of these partners, the government provided minimal details, suggesting the amount merely reflected what would be necessary to build a datacentre accommodating substantial computing power, indicating a capability of 1.1GW of electricity.
Critics like Kamila Kingstone from Spotlight on Corruption have cautioned against misleading implications that such investment would materialize, explaining that presenting the £20 billion as potential funding is disingenuous when it primarily reflects the financial requirements needed to develop the infrastructure.
John Johnsson, the Conservative leader in North Tyneside, expressed surprise at the lack of prior notice to local authorities about the Stargate UK announcement. He pointed out that the lack of meetings and coordination contradicts Altman’s assertion that the project represented a “shared vision” for AI investment in the UK.
Additional concerns arise over the feasibility of Stargate UK, as evidence from an FoI request revealed that the site reportedly lacked a proper electrical grid connection, offering an alternative power solution that remained undisclosed.
“There simply isn’t the necessary infrastructure to support such an initiative,” remarked Johnsson, emphasizing the unlikely prospects of the project coming to fruition in North Tyneside. He noted that fundamental issues such as energy costs, grid capacity, and overall infrastructure were not adequately considered.
A government spokesperson reassured that efforts to cultivate favorable conditions for investment in the UK's AI and datacentre infrastructure are ongoing, mentioning a dedicated task force co-chaired by the technology secretary and the North East mayor. They claimed that the North East AI growth zone would expand energy capacity to 1.1GW when fully operational, with the first phases expected to function by 2028.
