The UK’s AI Minister, Kanishka Narayan, has announced a £100 million investment by British chip startup Fractile in its UK operations, as he called on technology leaders to take bolder risks and back home-grown innovation.
Speaking in central London, the minister urged founders, investors and industry leaders to strengthen British ownership of emerging technologies, arguing that this is essential if the UK is to shape the future of artificial intelligence and advanced computing.
He said the next phase of growth must be broad-based and inclusive, with AI’s benefits spread across regions and communities rather than concentrated among a small elite.
The announcement comes as Fractile confirmed plans to invest £100m in its UK headquarters over the next three years. The company will expand its London and Bristol sites, establish a new industrial hardware engineering facility, and grow its domestic workforce to develop next-generation AI systems.
Engineers at the new Bristol site will integrate Fractile’s advanced chips into high-performance AI platforms, enabling more complex and demanding tasks to be carried out at greater speed. The facility will also host a specialist laboratory for testing new software designed for future computing architectures.
The expansion is expected to strengthen the UK’s AI hardware ecosystem and support wider ambitions to build sovereign capability in critical technologies.
Fractile’s decision to scale in Britain reflects growing confidence in the country’s technology sector, now valued at more than £1 trillion and supported by record levels of private investment.
Recent analysis shows the UK ranks third globally for venture capital funding, underlining its position as Europe’s largest tech hub and a major destination for international talent and innovation.
The investment also follows a series of government initiatives linked to the AI Opportunities Action Plan, which is expected to create up to 15,000 jobs and attract more than £28bn in private investment.
Kanishka Narayan said the UK must be more ambitious in supporting start-ups and emerging technologies.
“I am setting Britain’s AI leaders a challenge – bang the drum for start-ups, spread the opportunities to every corner of our country, and embrace risk,” he said.
“This is how we leverage AI to serve hard-working people, our economy, and British values. By investing in British tech innovation, just as Fractile is doing today, we can reinforce our leadership in AI and boost our influence on the global stage.”
He added that the government is committed to creating the conditions for innovation to scale, through investment in computing infrastructure, skills development, and support for open-source and sovereign AI initiatives.
Ministers said the announcement signals a wider shift towards building advanced AI capabilities in the UK rather than relying on overseas providers.
With increased funding for compute capacity, the creation of a sovereign AI unit, and long-term skills programmes, the government aims to position Britain as both a developer and exporter of advanced AI technologies.
Industry figures see Fractile’s investment as an important signal that domestic companies are willing to commit long term to the UK, provided the policy environment continues to support innovation, scale and international competitiveness.
