Google’s parent company, Alphabet, has unveiled a £5bn ($6.8bn) investment in the UK’s artificial intelligence sector, marking one of the largest commitments of its kind ahead of US President Donald Trump’s state visit. The investment, which will be spread over the next two years, is aimed at bolstering infrastructure and advancing scientific research. Alphabet president and chief investment officer Ruth Porat told the BBC that the company saw “profound opportunities in the UK” thanks to its pioneering work in advanced science. As part of the plan, Alphabet will officially open a $1bn (£735m) data centre in Waltham Cross, Hertfordshire, alongside Chancellor Rachel Reeves, with further funds earmarked for DeepMind, the London-based AI research firm led by Nobel Prize winner Sir Demis Hassabis.

Porat said the investment reflected a growing “US-UK special technology relationship,” highlighting both risks and opportunities in harnessing AI for economic growth, public services, and scientific progress. She credited the government’s AI Opportunities Action Plan as a factor behind Alphabet’s commitment but cautioned that realizing the full benefits of the AI boom was “not a foregone conclusion.” Reeves, meanwhile, hailed the deal as “a powerful vote of confidence in the UK economy” and evidence of the strength of its transatlantic partnership. The investment announcement also comes as Google joins the ranks of tech giants worth more than $3 trillion, alongside Microsoft, Apple, and Nvidia.

The move is part of a wave of US corporate announcements expected during Trump’s visit, with further multibillion-dollar commitments anticipated in the coming days. Markets have already responded, with the pound strengthening on expectations of rate shifts and a surge in American investment inflows. Analysts note that Google’s shares have climbed in recent weeks following US courts’ decision not to order the breakup of the company. CEO Sundar Pichai’s strategy of turning Google into an “AI First” business has been credited with fueling much of the company’s recent momentum, despite earlier perceptions that it was trailing startups such as OpenAI.

The Waltham Cross facility will play a key role in Alphabet’s expansion. Porat stressed the company’s commitment to sustainability, explaining that the data centre will be air-cooled rather than water-cooled, with excess heat captured and repurposed to warm schools and homes. Google has also partnered with Shell to supply 95% carbon-free energy to its UK operations. While Trump has advocated for the use of more carbon-intensive energy sources to meet the surging power demands of AI data centres, Porat insisted that Google remained committed to renewable energy and was working to modernize the grid to handle fluctuating supply. She added that efficiency gains were being built into “all aspects of AI” development, from microchips to models and data centres.

Porat also addressed concerns that AI could worsen employment challenges for graduates, saying Google was devoting significant resources to tackling the issue. She acknowledged that “it would be naive to assume there isn’t a downside,” warning that if AI is used only for cost-cutting, economies may miss out on its broader benefits. However, she argued that entirely new industries are being created and that in fields such as healthcare, AI is serving as a collaborator rather than a replacement for professionals. “Each one of us needs to start using AI so you can understand how it can be an assistance to what you’re doing, as opposed to actually fearing it,” she said.

Source: BBC.