UK government launches £500m Sovereign AI fund to back drug discovery and supercomputing startups

The UK government has launched a £500 million Sovereign AI fund and unveiled the the first wave of companies which will receive support through the initiative.

The startups receiving funding include those focusing on drug discovery, AI infrastructure and next-generation computing, the government said.

Led by the Department for Science, Innovation and Technology (DSIT), the programme aims to help homegrown AI companies start, scale and compete globally, while strengthening national capabilities in a technology the government said is “critical” to both economic growth and national security.

The first equity investment from the Sovereign AI Unit will go to Callosum, which aims to develop a new class of AI infrastructure designed to manage complex computing environments.

Six additional startups will gain access to the AI Research Resource (AIRR) supercomputer network, which will allow them to use specialist hardware to train advanced AI models. The startups include AI biology company Prima Mente, inference cloud company Doubleword, and bioengineering company Twig Bio.

The government said the Sovereign AI Unit is designed to operate more like a venture capital fund than a traditional government-backed unit, combining investment with access to compute, talent and regulatory support. Supported firms will receive funded access to UK AI supercomputers, with up to one million GPU hours available per startup to train and test advanced models.

The government added that companies will also benefit from fast-tracked visas for global AI talent, R&D funding and assistance navigating procurement opportunities, with the aim of keeping high-value AI development within the UK.

Beyond direct investment, the programme includes a £282 million R&D support package and plans to launch funding calls for datasets and other AI development resources. The government said the initiative intends to reduce reliance on overseas technology providers and ensure that economic value generated by AI innovation remains in the UK.

The Sovereign AI Unit is also in discussions with around 30 additional firms and will begin a nationwide tour in May to promote participation and expand access to the programme.

“Britain has the foundation to be a global AI leader in many fields, with a unique and enviable mix of talent, capital, and infrastructure which make this country the natural home for world-leading innovation,” said James Wise, chair of the Sovereign AI Unit. “Now, through Sovereign AI, we can use the state’s unique capabilities to double down on these strengths, backing Britain’s founders to scale here in the UK and globally.”

The UK’s push for AI infrastructure and development has been a mixed success. It has managed to attract top firms such as OpenAI and Google to headquarter their European AI operations in the country, but faced setbacks to infrastructure investment, including the pausing of the flagship Stargate UK data centre.