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LONDON - Nvidia announced on Thursday a £2 billion investment in the United Kingdom aimed at catalyzing the nation’s artificial intelligence startup ecosystem and scaling the next generation of AI businesses. The semiconductor giant, currently valued at $4.3 trillion and maintaining a "GREAT" financial health score according to InvestingPro, continues to demonstrate its commitment to global AI development.
The investment will provide capital and advanced AI infrastructure to major UK hubs including London, Oxford, Cambridge and Manchester, according to a company press release.
Several venture capital firms including Accel, Air Street Capital, Balderton, Hoxton Ventures and Phoenix Court will join Nvidia in this initiative to foster the UK AI ecosystem.
"This is the age of AI — the big bang of a new industrial revolution," said Jensen Huang, founder and CEO of Nvidia. "The United Kingdom is in a Goldilocks moment, where world-class universities, bold startups, leading researchers and cutting-edge supercomputing converge." The company’s strong market position is reflected in its robust financial metrics, including a return on equity of 109% and healthy current ratio of 4.21.
UK Prime Minister Sir Keir Starmer described the investment as "a major vote of confidence in the UK both today and long into the future."
The initiative aims to address challenges facing UK AI companies, including limited access to supercomputing resources, constrained venture capital outside London, and rising energy costs.
The investment will be domiciled in the United States and activated in the United Kingdom, highlighting the transatlantic partnership between the two countries.
Nvidia (NASDAQ:NVDA) stated that the funding will help create new companies and jobs while empowering the UK to compete in the global AI market.
The announcement follows Nvidia’s recent commitment to manufacturing up to half a trillion dollars’ worth of AI supercomputers in America.
In other recent news, Nvidia has announced a significant partnership with UK firms to deploy 120,000 Blackwell GPUs in data centers across the United Kingdom by the end of 2026. This initiative represents an investment of up to £11 billion and is touted as the largest GPU rollout in the country’s history. Meanwhile, Nvidia is also facing challenges in China, where demand for its new AI chip, the RTX6000D, has been lukewarm. The chip, designed for AI inference tasks, is reportedly expensive compared to its performance, and major tech firms are hesitant to place orders. Furthermore, China has ordered companies, including Alibaba and ByteDance, to stop buying certain Nvidia AI chips, a decision U.S. House Speaker Mike Johnson labeled as "counterproductive." In a separate development, Nvidia is partnering with Intel, which includes a $5 billion equity injection and the use of Nvidia GPUs in Intel’s future x86 PC chips. This partnership has led BofA Securities to raise its price target on ASML Holding NV to EUR941.00, maintaining a Buy rating. Additionally, Microsoft has announced plans to build the world’s most powerful AI datacenter in Wisconsin, named Fairwater, featuring a vast array of Nvidia GB200s.
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