Nvidia, Microsoft, and OpenAI back UK AI startup with $700M

Nvidia, Microsoft, and OpenAI have collectively backed London-based AI infrastructure company Nscale with $700 million to dramatically expand the UK’s AI computing capacity. The partnership positions the UK as a major player in the global AI infrastructure race, with plans to deploy up to 58,640 Nvidia GPUs across the country and potentially scale to 300,000 globally.

What you should know: The investment transforms Nscale from a crypto mining spinoff into a cornerstone of Britain’s AI ambitions.

• Nscale emerged from Arkon Energy, a cryptocurrency mining company, and only exited stealth mode last year.
• The company didn’t exist when OpenAI launched ChatGPT in late 2022, highlighting its meteoric rise.
• This represents the most significant AI infrastructure deployment in UK history.

The big picture: Major tech giants are treating the UK as a critical battleground for AI supremacy, with Google already committing $6.8 billion to British AI initiatives.

• The collaboration deepens US-UK technology ties at a time when both nations are competing with China for AI leadership.
• Microsoft CEO Satya Nadella emphasized they are “building the digital infrastructure for the AI era, deepening the connection between the US and UK.”

Key infrastructure projects: Two massive computing facilities will anchor the UK’s AI capabilities.

• Nscale and Microsoft are building the UK’s largest AI supercomputer at Nscale’s Loughton campus, delivering 50MW of AI capacity scalable to 90MW.
• The facility will house 23,040 GB300 GPUs when it comes online in 2027.
• A separate “Stargate UK” platform, created by Nscale, OpenAI, and Nvidia, will focus on sovereign AI workloads with 8,000 Nvidia GPUs deployed in early 2025, expandable to 31,000.

Why this matters: The investment ensures British companies won’t be left behind in the AI revolution while strengthening national technological sovereignty.

• Nscale CEO Josh Payne emphasized the initiative demonstrates “the UK can be an AI maker, not a taker.”
• The infrastructure will provide compute access specifically for UK startups, scale-ups, and enterprises.
• OpenAI CEO Sam Altman noted the UK’s advantages: “world-class researchers, millions of ChatGPT users, and a government that quickly recognized the potential of this technology.”

What they’re saying: Industry leaders frame this as a pivotal moment for both AI development and international collaboration.

• “We are at the Big Bang of the AI era – and the United Kingdom stands in a Goldilocks position, where world-class talent, research and industry converge,” said Nvidia CEO Jensen Huang.
• “Stargate UK builds on this foundation to help accelerate scientific breakthroughs, improve productivity, and drive economic growth,” added OpenAI’s Sam Altman.
• “This historic commitment from Nscale shows how the UK can build the future of AI, together with our partners from the US,” said Nscale’s Josh Payne.