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OpenAI shelves Stargate UK in blow to Britain’s AI ambitions

1 day ago
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OpenAI has put on hold plans for a landmark UK investment citing high energy costs and regulation, in a blow to the government which has put AI at the centre of its growth strategy.Stargate UK was a part of the UK-US AI deal announced last September, in which US companies appeared to commit £31bn to the UK’s tech sector, part of a larger series of investments intended to “mainline AI” into the British economy.It came as the Labour government seeks to make AI and datacentres the engine of its growth plans, alongside closer ties with Europe and regional growth.“This is a wake-up call for the government to manage energy costs in the UK and foundation infrastructure,” said Victoria Collins MP, the Liberal Democrat spokesperson for science, innovation and technology.“We cannot be dependent on US tech companies to build our own sovereign capabilities – whether that’s energy cost, supply or even data and phone signal.

”The Labour MP Clive Lewis said: “When a government has no economic strategy worthy of the name and no real industrial vision, it becomes vulnerable.The Silicon Valley companies that flew into London knew exactly what they were dealing with: a prime minister and a technology secretary desperate to project momentum, willing to dress up press releases as policy.”A Guardian investigation last month revealed many of the deals to “mainline AI into the veins” of the British economy were “phantom investments”, and a supercomputer scheduled to go live in 2026 was last month still a scaffolding yard in Essex.That supercomputer was to be built by Nscale, a UK firm that had never built a datacentre before but said it was aiming to deliver the project in 2027.Nscale was also to build key datacentres for Stargate UK.

The Stargate project was to support Britain in building out “sovereign compute” – infrastructure that would allow the government and other UK institutions to run AI models on datacentres in the country,That is, in theory, crucial to the security of British data,Now, OpenAI has apparently put it on pause, saying it would wait for “the right conditions” to enable “long-term infrastructure investment”,Ben Spencer, shadow science minister, said: “When global firms cite high energy costs and regulatory uncertainty as reasons to walk away, it tells you everything about the direction of travel,For too long, Labour have prioritised courting big tech headlines while neglecting our domestic startups, but also the fundamentals that actually attract investment at home.

”An OpenAI spokesperson said: “We see huge potential for the UK’s AI future, and we support the government’s ambition to be an AI leader,We continue to explore Stargate UK,”OpenAI’s exact commitments under the Stargate project were always vague,The crux of the investment was that the company would “explore the offtake” of 8,000 high-powered Nvidia chips at Stargate datacentres constructed by its partner, Nscale,Contacted by the Guardian several weeks ago, the company said it had no updates on whether it was going ahead with that plan.

Tom Hegarty, the head of communications at the tech equity organisation Foxglove, said OpenAI’s chief executive, Sam Altman, was racking up a “record of U-turns any government minister could be proud of”, after the recent closure of OpenAI’s video-generation app Sora and Altman’s previous claim that AGI (artificial general intelligence) would be achieved by 2025.“But that hasn’t stopped ministers from jumping fully aboard the AI hype train,” said Hegarty.“In January 2025, then-tech secretary, Peter Kyle, said a new supercomputer in Essex would be ‘the largest UK sovereign AI datacentre’ by the end of 2026 and ‘a fresh start for our economy and for working people’.Instead, a year later the ‘supercomputer’ was still a scaffolding yard.”A government spokesperson said: “Our AI sector has attracted more than £100bn in private investment since the government took office, with the sector growing 23 times faster than the wider economy last year.

That is delivering the jobs and opportunities hard-working people deserve.“Our focus is on continuing to create the right conditions for investment in the UK’s AI and datacentre infrastructure.We are continuing to work with OpenAI and other leading AI companies to strengthen UK compute capacity.”High energy costs, rising further because of the US-Israel war on Iran, are expected to delay or derail AI datacentre projects worldwide.The UK’s industrial electricity prices were already the highest in Europe before the start of the war.

Andy Lawrence, at the Uptime Institute, said OpenAI, Nscale, and the government all had reasons not to proceed with the project at this point, given rising energy prices and OpenAI’s tightening competition with rivals such as Anthropic.“The government was not able to make sufficient commitments to be a client.I think the overall demand for all of this wasn’t, and still isn’t apparent.The whole sense of urgency has dissipated,” Lawrence said.Nscale has been approached for comment.

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The Guide #237: Fab 5 Freddy, the street artist at the heart of New York’s creative zenith

In this week’s newsletter: A new memoir by Fred Brathwaite offers an insight into the city’s emerging underground scene in the 70s and 80s – and shows us the power of subcultures in difficult times Don’t get The Guide delivered to your inbox? Sign up hereHello everyone, I’m Coco Khan, covering for Gwilym Mumford, and this week, as the sun started to peep out from behind the clouds, I counted five Jean-Michel Basquiat T-shirts on passersby during a park walk.Sure, I may live in a trendy London borough – but it’s still hardly surprising, given that the name and works of the New York artist whose roots were in graffiti have been licensed to fashion brands from Next, Primark and Uniqlo to Supreme and Saint Laurent. It’s hard to imagine that the artist – who died at 27 of a drug overdose, and whose signature slogan SAMO© (Same Old Crap – a criticism of consumerism, and the commodification of art, with a playful copyright mark) – would approve of the Basquiat name being on keyrings, tote bags and clothing. But hey, what do I know – I’m just another purist bore still upset that Ramones T-shirts are worn by millions who couldn’t name a song, when the Ramones themselves did not care.Still, the hope is that such merchandise connects new audiences to the artist’s work and graffiti as an art form

6 days ago
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From The Drama to Malcolm in the Middle: your complete entertainment guide to the week ahead

R-Patz and Zandaya star in a romcom with bite, and the lovably dysfunctional family is back in a revival of the turn-of-the-millennium comedy hitThe DramaOut now It is hard to imagine a more zeitgeist-flavoured proposition than Zendaya and Robert Pattinson starring in a dark romantic comedy from A24 – and frankly we are here for it. The pair play a couple whose relationship is tested by the revelation of brand new information during their engagement. Directed by Kristoffer Borgli (Dream Scenario).Kim Novak’s VertigoOut now The notional star of Alfred Hitchcock’s masterly ode to obsession is James Stewart, but it is the image of Kim Novak in her iconic dual role that endures. Documentarian Alexandre O Philippe sits down with the actor as she discusses her career in general and her iconic work on Vertigo in particular

7 days ago
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Post your questions for DJ Shadow

It’s almost 30 years since DJ Shadow released his era-defining debut album, Endtroducing….., and as is the way of the nostalgia industry, it had a lavish 25th-anniversary reissue five years ago, remastered at Abbey Road studios. It was such a success that Shadow has decided to repeat the process and clean up his “pre-album and non-album” catalogue. In May comes The Mo’Wax Singles 1993-1997, a box set featuring eight 12ins with all the Californian producer’s singles for James Lavelle’s label, plus alternative mixes and brand new art

7 days ago
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Colbert on Trump’s shifting tone on Iran: ‘It’s a military strategy known as starting a 1,000-piece jigsaw puzzle’

Late-night hosts touched on soaring oil prices from Donald Trump’s war in Iran as he backs down from solving the crisis in the strait of Hormuz.Stephen Colbert opened Tuesday’s monologue with an acknowledgment that for the first time since 2022, gas prices have soared to more than $4 a gallon. “I mean, who could’ve seen this coming? Just two days ago gas was a reasonable $3.98,” the Late Show host quipped. “Yesterday it was $3

9 days ago
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Chatting dating, jazz and the Harlem Renaissance: the exclusive supper clubs where Black women nourish community

Dimmed lights and the honey-like vocals of R&B singers greeted guests at Sost, a restaurant in Washington DC, in late December. Though they entered as strangers, the 11 Black women attendees hugged each other before taking their seats. The ambiance was intimate and soulful, with a sparse table setting in a private room that boasted deep red walls. Crystle Johnson, the founder of Kinory, a dining community for Black women, led the group in a moment of silent meditation.As an icebreaker, everyone shared who they were without talking about their profession

10 days ago
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‘After one gig, someone stole my car with my dole money in it’: Morcheeba on how they made The Sea

We’d made our first album and were waiting for it to come out. But we wanted to carry on writing more stuff while we were in the mood. I even cut Christmas dinner short at my uncle’s in Brixton, London, so we could get back to the studio. We would work until we passed out, then I’d sleep underneath the mixing desk with my head in the bass drum, as that’s where the pillow was.One night in early 1996, my brother Paul and I stayed up all night drinking vodka, trying to write as many songs as we could, and we came up with much of the Big Calm album

11 days ago
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The daughters of Dominican immigrants achieved the American dream. They’re bringing sweet chocolate success back to the homeland

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‘Mental breakdown’: oil tanker workers stuck in Gulf for six weeks are reaching their limit

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UK to give £380m grant to Tata battery factory in Somerset

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Lidl to open 50 UK stores in year ahead – and its first pub

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Chris Haskins was a champion of the left behind | Letter

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Oil rises and global stocks wobble amid worries over ‘fragile’ ceasefire deal in Middle East – as it happened

1 day ago