OpenAI has struck a new agreement with the UK government to explore how AI can help make public services more efficient. According to that, OpenAI may get access to certain government data and its technology could be tested across areas like education, defense, national security, and the justice system.
The agreement outlines plans for the UK and OpenAI to possibly create an “information sharing program” and to “develop safeguards that protect the public and uphold democratic values.” They also plan to look into investing in AI infrastructure or growing data centers to support powerful AI systems.
As part of this effort, OpenAI will grow its London office, which already has over 100 employees.
This isn’t a legally binding contract, but more of a shared vision between OpenAI and the UK government on how they might work together going forward.
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Technology Secretary Peter Kyle believes that “AI will be fundamental in driving change” in the UK and “driving economic growth.” OpenAI CEO Sam Altman echoed that optimism, saying the partnership would “deliver prosperity for all.”
However, digital privacy groups have criticized the deal, calling it “this government’s credulous approach to big tech’s increasingly dodgy sales pitch.”
Meanwhile, Dr. Gordon Fletcher from the University of Salford noted that the collaboration could help by freeing up “highly skilled public servants to focus on the difficult one-in-a-million situations that AI might struggle to address.”
This deal comes as the UK government looks for ways to lift the country’s slow-moving economy, which likely grew only around 0.1% to 0.2% from April to June. Back in January, Prime Minister Keir Starmer launched an “AI Opportunities Action Plan” to help boost growth, which got strong support from many big tech companies.
The UK government has shown it’s open to U.S. AI investment, having made similar agreements with OpenAI’s competitors, Google and Anthropic, earlier this year. Talking about the new deal with OpenAI, the government said it “could mean that world-changing AI tech is developed in the UK, driving discoveries that will deliver growth.”
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Recently, the UK government took a major step to strengthen its role in the global AI race by announcing a £1 billion ($1.3 billion) plan to significantly boost its computing power. At the heart of this effort is Isambard-AI, a new supercomputer based in Bristol, which is now the most powerful AI system in the country. With over 5,400 Nvidia GH200 chips and ranked 11th in the world, it’s set to support everything from medical research to climate modelling and public safety innovation.
As part of a wider push, the government is also rolling out “AI Growth Zones” in places like Culham to speed up the development of new data centers and improve access to power. These zones are attracting serious private investment, with companies like Vantage Data Centers, Nscale, and Kyndryl, committing a combined £14 billion ($18.1 billion).