The UK-US Tech Prosperity Deal Explained

When browsing through photos of the State Banquet for the USA on the 17th September 2025, we had to do a double-take when we saw photos of Sam Altman (CEO of OpenAI) and Jensen Huang (CEO of Nvidia). State Banquets are hosted by royalty, and normally attended by not just key diplomats but also key contributors to cultural relations between the UK and the attending nation. So what were some of the biggest names in tech doing there?

The next day, the answer was revealed. President Trump and Prime Minister Keir Starmer unveiled the new £31 billion Tech Prosperity Deal between the UK and the US--one of the biggest packages of tech investment the UK has ever seen. The companies involved are all A-Listed in the tech world, and it generated much buzz in the digital and tech circles.

So what’s in the deal, and why does it matter? Let’s break it down.

What are the commitments?

The commitments by the big tech firms are sizeable and ambitious. They include:

• Microsoft: £22 billion investment over 4 years, including a powerful AI supercomputer and major cloud infrastructure

• Google: a new data centre in Hertfordshire, part of a £5 billion, 2-year investment in the UK

• Nvidia: 120,000 GPUs to be deployed across the country to power AI research and industry

• OpenAI: delivery of a Stargate UK project, where massive investment is made to build large scale AI infrastructure

• Salesforce: £1.4 billion investment in its UK business through 2030, with Salesforce UK becoming an AI hub for the UK and Europe operations

• CoreWeave: £1.5 billion investment in AI data centre capcity and operations in the UK

• The creation of an AI Growth Zone in the North East of England, promising tens of thousands of skilled jobs outside of London and the South East

This is just a few names on the list; the GOV.UK press release has the comprehensive list of investment and firms participating in the Tech Prosperity Deal. And it is worth pointing out that the deal is about tech, not just AI, so areas such as fusion energy, healthcare and quantum technologies are covered as well.

The good news!

There are a lot of positives to be gleaned from this announcement, such as:

Jobs and growth: thousands of high-skilled roles will help boost the UK economy, when growth has been sluggish and the headlines have been glum

Tech competitiveness: by aligning itself with the US, one of the leading powers in the AI race, the UK has put itself back in the game when it comes to advanced technological development

Regional investment: by anchoring projects like the AI Growth Zone in the North East, it gives these areas of the UK much-needed attention and investment, spreading benefits beyond London in particular, which achieves the government's long-standing but under-delivering promise of "Levelling Up"

Energy and infrastructure: because of the added demand supercomputers and GPUs have on energy and water, improvements in energy infrastructure could benefit the general public as well

Science and Healthcare: the push for AI development and quantum technology is not just for techy digital reasons; healthcare and drug discovery is cited multiple times as one of the key focuses. The alliance allows for the US and UK to co-create breakthrough research topics with the aim of pushing the boundaries and improving what is possible in , science medicine and patient care. This could have a long-lasting positive impact for everyone, not just in the UK and US, but worldwide as well

The hesitation...

It is perhaps natural for the mass media to be negative sceptics on this, and for even more to put a negative spin due to its association with President Trump. We are not one of them. However, we share some concerns on the matter, such as:

Reliance on US firms: while the investment is welcome and needed to boost the UK's economy, the UK could become dependent on the American companies rather than try and champion and develop its own home-grown talent and solutions. This could lead to a spiral whereby the UK becomes increasingly reliant on the US, which erodes our ability to take the development in the direction that best suits our country

Sovereignty and Control: tying in with the previous point, if the UK becomes too reliant on the American firms, there is a risk that the UK has to "play by their rules". What does this mean from a governance and regulatory perspective? Can the UK stand firm, or will it have to bend to accept US terms due to the reliance on American tech?

Energy demands: it is no secret that AI and cloud infrastructure require huge amounts of electricity and water. While the deal does mention growth in energy infrastructure, what are the implications in the short term? Bills are already high for many households; now with the competition for resources, it may drive bills up even more until an energy solution is built.

A lot of people talk about focusing on the Big Picture, but the minute details are important to ensure the Big Picture stands up. And it's in the not-so-minute details where the concerns start to come through. At this point, much of the details are broad and vague, so as the actual plan is revealed, hopefully there is more and more reassurance that the nitty-gritty has been considered and planned for.

Our Mpowering Take

The Tech Prosperity Deal is a bold and welcome vote of confidence in the UK’s future--but it comes with strings attached. If managed wisely, it could accelerate Britain’s role in cutting-edge industries, create jobs, and spread opportunity across the regions. If not, it risks locking the UK into dependence on foreign firms and stretching already fragile infrastructure.

In conclusion? Promising headlines, positive upsides, worrying implications.

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