Unit aims to offer support way beyond that of commercial funders, as minister hails launch as ‘one of the most important things this government will do for this country’s future’

Government has today opened its £500m Sovereign AI unit, which will operate as a state-backed venture capital organisation, with a remit to invest in UK tech firms seeking to grow.

First trailed in the Spending Review of summer 2025, the unit will be formally opened later today by technology secretary Liz Kendall – who is also expected to announce details of the first companies to receive funding through the operation.

The unit, which will be based in the Department for Science, Innovation and Technology and chaired by career venture capitalist James Wise, has been created as “too many high-potential firms still struggle to make the leap from breakthrough research to large-scale commercial success”, according to DSIT.

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The department added that, as well as “making targeted investments in UK AI firms”, the unit will also offer the ability to “go significantly further by using the unique capabilities of the state to go beyond traditional funding models”.

Such additional assistance will include the likes of “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”.

The aim is to better enable ambitious UK tech firms to grow internationally via “a deliberate shift in approach” in government, which now intends to move on “from fragmented support to focused, long-term backing of AI firms operating in strategically important areas”.

DSIT indicated that these focus areas are likely to include public services, national resilience, and opportunities to deliver marked economic growth.

In a speech later tonight, Kendall is expected to say: “If we believe AI is absolutely critical to our economic prosperity and our national security – which I do – then 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.”