The government’s Sovereign AI Unit, a £500m investment in UK AI to create jobs and drive economic growth, is set to be launched by technology secretary Liz Kendall today.
Sovereign AI is designed to drive enterprise and innovation, and support AI companies to scale, compete and win on the global stage.
The unit will act as a venture capital fund within government, making targeted investments in UK AI firms and using the capabilities of the state to go beyond traditional funding models.
On top of capital, Sovereign AI will provide direct access to the UK’s fastest AI supercomputers, specialist R&D support and grants, and direct engagement with government on procurement opportunities – as well as help to navigate and shape regulatory innovation.
UK AI startups raised £6bn in venture capital last year and, just three months into 2026, they’ve already raised more than half of that figure again.
The government says opportunities for Britain to succeed in the AI era are vast, but too many high‑potential firms still struggle to make the leap from breakthrough research to large‑scale commercial success. Sovereign AI has been designed to close that gap.
The official launch will take place tonight at an event hosted by UK-based AI car firm Wayve, which announced £44m of new funding yesterday.
Describing AI as “absolutely critical to our economic prosperity and our national security,” Kendall is expected to say: “This fund, and the even bigger ambition behind it, is one of the single most important things this government will do for the future of this country.
“We believe in Britain and we are betting on Britain. We are backing our brilliant innovators and entrepreneurs so we seize the benefits of this technology to reshape Britain for the benefit of all.”
As part of her speech, Kendall is also expected to announce the first companies to receive backing from the unit.
