According to Cointelegraph, the United Kingdom has recently withdrawn its commitment to allocate $1.7 billion for the advancement of frontier technologies, including artificial intelligence and quantum computing. This decision has raised concerns among industry insiders, who fear it may hinder innovation and push startups to seek foreign investment opportunities.
The funding, initially promised by Conservative party leaders less than a year ago, was rescinded following the Labour party's victory in June. The cancellation of the $1.7 billion acceleration fund in early August has been met with widespread disapproval from the tech community.
The AI sector remains a global competition, with significant hubs for quantum technologies located in China, the European Union, the UK, and the United States. In the UK, many startups and businesses in the quantum technologies industry are university spinouts, originating from institutions like Oxford and Cambridge. As of June 2023, there were at least 51 quantum technology startups in the UK, including notable companies such as Oxford Quantum Circuits (OQC), Cambridge Quantum Computing (CQC), and PsiQuantum.
Following the Labour party's decision to cancel the planned investments, concerns have grown that UK-based startups and established companies in the quantum industry may relocate their offices and laboratories to the US and other foreign territories. Ashley Montanaro, co-founder of quantum computing startup Phasecraft, expressed dissatisfaction with the government's decision in a recent interview with Tech.EU. Montanaro highlighted that companies like Phasecraft are increasingly setting up international offices to find support and enthusiasm for quantum technologies that align with their ambitions. Phasecraft, for instance, has opened a new office in Washington, D.C., to recruit talent and conduct US-based networking operations.
