The government has announced a new £1.1 billion AI Hardware Plan to support British firms developing the chips and computing power behind AI.

The AI Hardware Plan sets out how the government will back British companies developing the chips and semiconductor technologies behind AI, while also investing in the scientists, engineers and technicians needed to turn new ideas into products and good jobs in the UK.

As part of the plan, £750 million has been allocated for a national AI supercomputer.

£120 million will fund a new AI Hardware Innovation Programme and at least £20 million will be spent on expanding the Scaling Inference Lab.

£45 million has been set aside for skills, backing doctoral training and undergraduate bursaries to train more engineers, chip designers and technicians, and open up clear pathways into the sector from university and on-the-job training.

Technology Secretary Liz Kendall said: "AI is the defining currency of economic and hard power in today’s world and the countries that control the hardware behind it will hold the keys to the future.  

"The UK is already a global leader in chip design, and I believe this is a race Britain can win. To do that, we must back more British AI – and that means investing in the chips, computing power and skilled people behind it.  

"That is exactly what this plan does, backing the British firms developing the next generation of AI hardware, so we get more jobs, more growth, and more control over the technologies our future depends on. We are backing Britain because we believe in Britain."