UK Launches £500 Million Sovereign AI Fund for Startups

The Government of the United Kingdom launched a £500 million (approximately $675 million) sovereign AI fund on April 16, 2026, to accelerate the commercial growth of domestic artificial intelligence companies. Unveiled by Technology Secretary Liz Kendall at the Wayve headquarters in London, the fund operates as a state-backed venture capital unit designed to reduce dependence on foreign technology and bolster national security.

Led by James Wiseman and Joséphine Kant, the fund provides equity investments and operational support, including legal fee coverage for companies incorporating as UK Limited Companies and expedited visa decisions for international R&D hires. The unit's first equity investment was awarded to the AI infrastructure startup Callosum. Additionally, six companies—Prima Mente, Cosine, Cursive, Doubleword, Twig Bio, and Odyssey—were granted up to one million GPU hours each on the AI Research Resource supercomputing network.

The Department for Science, Innovation and Technology is currently in discussions with approximately 30 additional companies regarding infrastructure access. Chancellor of the Exchequer Rachel Reeves integrated the initiative into the broader national economic plan, while Liz Kendall framed the fund as a critical step to ensure British innovators do not have to choose between their ambition and their home.