Microsoft just threw down a $30 billion gauntlet in the UK, announcing the country's largest AI infrastructure investment that dwarfs Google's $6.8 billion commitment made hours earlier. The four-year deal includes building Britain's most powerful supercomputer with 23,000 GPUs, marking a dramatic turnaround from Microsoft's bitter regulatory fights just two years ago.
Microsoft just made the boldest AI infrastructure bet in UK history, committing £22 billion ($30 billion) over four years to build what will become the country's largest supercomputer. The announcement comes just hours after Google revealed its own £5 billion ($6.8 billion) UK investment, setting up a direct battle for AI supremacy in Britain.
"This will account for more than two-thirds of the tech sector's total investment announcements in the UK that are being made this week," Microsoft vice chair Brad Smith told reporters during an exclusive press briefing with The Verge. "We're focused on British pounds, not empty tech promises, because it's easy to have big numbers, but we'll be good for every cent of this investment."
The not-so-subtle dig at Google's earlier announcement reveals just how competitive this AI infrastructure race has become. Smith's $30 billion commitment represents a "very substantial increase" over Microsoft's previous 2023 UK investment, though the company hasn't disclosed that earlier figure.
[embedded image: Microsoft's planned UK supercomputer visualization]
The centerpiece of Microsoft's investment is a partnership with Nscale to build Britain's most powerful AI supercomputer, equipped with more than 23,000 advanced GPUs. "We're not just investing in the UK, we're investing with partners in the UK," Smith emphasized, highlighting the collaborative approach that includes expanding existing data centers alongside the new supercomputer facility.
This announcement represents a stunning reversal from Microsoft's rocky relationship with UK regulators. Just two years ago, Smith openly criticized the Competition and Markets Authority during Microsoft's $69 billion Activision Blizzard acquisition, saying his confidence in the UK had been "severely shaken." He even declared that "the European Union is a more attractive place to start a business" than Britain.
