UK Government Invests £500 Million Directly in AI Startups Through New Fund

The UK government has created a Sovereign AI fund with £500 million to invest directly in artificial intelligence companies—its biggest government investment in AI to date. Run by investor James Wise, the fund works like a traditional venture capital investor, meaning the government buys ownership stakes in AI companies rather than simply giving out grants. This approach makes the government an active player in the AI market. The move comes as international investors are increasingly backing UK-based AI companies, particularly those working on self-driving vehicles and similar technologies.