The UK’s ambitions to lead the global race in artificial intelligence took a major step forward as OpenAI and the UK Government signed a strategic partnership agreement, with plans to expand infrastructure, turbocharge public service delivery, and support regional growth.
The agreement, signed by Technology Secretary, Peter Kyle and OpenAI CEO Sam Altman, sets the foundation for a far-reaching collaboration designed to solidify the UK’s leadership in the development and safe deployment of frontier AI technologies.
Under the partnership, OpenAI will increase its footprint in the UK, expanding its London-based research and engineering teams. The London office, OpenAI’s first international location established just two years ago, already plays a key role in advancing cutting-edge AI models and supporting local developers, businesses and start-ups. The new expansion signals a deeper commitment to UK talent and innovation.
Investing in AI Infrastructure and Regional Growth
As part of the agreement, OpenAI will work with the Government to explore investing in UK AI infrastructure – including data centres and advanced computing capabilities – aligned with national strategic priorities. This initiative ties into the UK’s AI Opportunities Action Plan, which outlines the country’s vision for building sovereign capabilities to secure the economic benefits of AI.
OpenAI is also expected to consider backing “AI Growth Zones” – special economic areas announced in the Spending Review and supported by £2 billion of public investment. With over 200 local bids already submitted, these zones are designed to attract billions in private investment and stimulate jobs and growth across the UK. The Government has confirmed that both Scotland and Wales will host AI Growth Zones, according to its latest Compute Strategy.
Transforming Public Services with Frontier AI
Beyond infrastructure, the collaboration focuses heavily on using AI to modernise and enhance taxpayer-funded services. Areas under consideration include justice, defence and security, and education – where frontier models can increase efficiency, cut red tape, and improve outcomes for citizens.
OpenAI will work alongside the UK’s new AI Safety Institute to share technical information and help government departments better understand the capabilities and risks of advanced AI systems. This supports the UK’s broader goal to develop a “world-leading AI ecosystem rooted in democratic values”.
One example of AI already being embedded in government is the use of ChatGPT in ‘Humphrey’, Whitehall’s AI-powered assistant. The latest model, GPT-4o, is used in ‘Consult’ – a tool that dramatically accelerates the policy-making process by organising public responses to consultations in minutes instead of weeks, freeing up civil servants for higher-level work.
Co-Founder of AI trade association UKAI, Ben Howlett said “Today’s landmark deal will not only increase productivity across the public sector, but it will also signal to boardrooms around the world that this Government means business when it comes to the adoption of AI. At a recent meeting with the Prime Minister, it was good to hear that the Government intends to embrace AI at all levels of government, meaning that all citizens will see better, more efficient public services.”
The new partnership may also explore building state-of-the-art AI-enabled R&D infrastructure in the UK, tailored to joint areas of strategic interest with the Government.
AI to Have Fundamental Reform Across Public Sector
Speaking at the signing, Technology Secretary Peter Kyle said “AI will be fundamental in driving the change we need to see across the country – whether that’s in fixing the NHS, breaking down barriers to opportunity or driving economic growth. That’s why we need to make sure Britain is front and centre when it comes to developing and deploying AI, so we can make sure it works for us.
This can’t be achieved without companies like OpenAI, who are driving this revolution forward internationally. This partnership will see more of their work taking place in the UK, creating high-paid tech jobs, driving investment in infrastructure, and crucially giving our country agency over how this world-changing technology moves forward.”
OpenAI CEO, Sam Altman added “AI is a core technology for nation building that will transform economies and deliver growth. Britain has a strong legacy of scientific leadership, and its government was one of the first to recognise the potential of AI through its AI Opportunities Action Plan.
Now, it’s time to deliver on the plan’s goals by turning ambition to action and delivering prosperity for all.”
A New Era for UK AI Leadership
The strategic partnership marks a major milestone in the UK’s AI journey, bringing one of the world’s foremost AI labs into direct collaboration with British policymakers and institutions.
With a growing footprint in the UK, OpenAI is set to become an integral part of the country’s AI ecosystem – driving innovation, creating jobs, and ensuring the UK is not just using AI, but shaping its global future.
