UK ‘invention agency’ grants £50m of public money to US tech and venture capital firms

A picture


Britain’s “invention agency” has pledged £50m of UK taxpayer money to US tech companies and venture capital projects.Dreamed up by Dominic Cummings to fund “crazy” ideas, the Advanced Research and Invention Agency (Aria) is meant to “restore Britain’s place as a scientific superpower”.But a joint investigation by the Guardian and Democracy for Sale, an investigative website, has established that more than an eighth of the agency’s £400m in research and development funding over the past two years has gone to 14 US tech companies and venture capital groups, in some cases, with no clear return for the UK or Aria.One of these companies, Rain Neuromorphics, is also backed by the OpenAI chief executive, Sam Altman, and was reported to be near collapse last year, shortly after winning Aria money.It did not respond to a request for comment; two of its founders appear to have left the company.

The Guardian understands it is still delivering a project for Aria.Cecilia Rikap, an economics professor at University College London, said: “Disguised as promoting moonshot projects, the government is using taxpayer money to further expand the power of the US tech ecosystem.“This is not a surprise coming from a government that has agreed to be not only Trump’s, but also big tech’s, footman.”Chi Onwurah, the chair of the Commons science and technology committee, said: “These reports on Aria’s spending underline the need for stronger scrutiny of the organisation, something its chair acknowledged when he appeared in front of my committee in 2025.“The Aria Act requires the organisation to benefit the UK by driving economic growth, supporting scientific innovation or improving quality of life.

It’s unclear how funding US-based venture capital and tech firms meets these aims, or aligns with the government’s commitment to regional innovation.”In response to a query from the Guardian, Aria said its “mission is to unlock breakthroughs that benefit the UK, which means funding the best ideas across universities, startups and private companies.Over 80% of our funding goes to UK-based teams — and where we fund international organisations, it is to transfer scientific capabilities to the UK, with contractual protections ensuring the benefits flow back here.”Transparency disclosures show it has spent a total of £23m on nine US tech firms.It gave an additional £6m to another US company, Normal Computing, which established itself in the UK only weeks before receiving the grant.

And it has given £29.4m to three US venture capital groups, including Pillar VC, tasked with developing a “diverse range of bespoke activities” to identify and support early-stage UK tech talent.These companies include the CIC Venture Cafe Global Institute, a US business that hosts events for entrepreneurs and has received £5.4m to run “venture cafes” across the UK; and the US firm Fifty Years, which will run a 14-week course that teaches scientists how to start companies.It will earn £7m to run the course six times for 50 students.

Pillar VC incorporated in the UK one day before Aria gave it a£10.9m contract.One other US group, Renaissance Philanthropy, backed by former Google CEO Eric Schmidt, also incorporated in the UK shortly before receiving £13.3m from Aria.“Renaissance Philanthropy is excited to be working with several governments on building their R&D ecosystems including the UK, Germany, Japan, and the US,” it said.

“We have been progressing several UK-based, UK-focused programmes in addition to the Activation Partnership with Aria.”In response to a query from the Guardian, Normal Computing said building a UK presence was a “contractual condition” for the funding, and highlighted its contributions to the economy: “Normal has reinvested approximately 150% of the award value back into the UK through salaries, operations and continued growth,” it said.Fifty Years said: “We thought UK scientists would benefit from our 5050 programme to help them start companies, but as a small 12-person team, we wouldn’t have been able to bring it to the UK without Aria’s partnership,” adding that it had funded two companies that have come out of its UK programme.CIC said: “We established a UK entity in order to operate efficiently within the country and pay all applicable local taxes,” adding that the primary beneficiaries of its work are the “UK innovation ecosystem and UK taxpayers”.Pillar did not respond to a request for comment.

The best public interest journalism relies on first-hand accounts from people in the know.If you have something to share on this subject, you can contact us confidentially using the following methods:The Guardian app has a tool to send tips about stories.Messages are end to end encrypted and concealed within the routine activity that every Guardian mobile app performs.This prevents an observer from knowing that you are communicating with us at all, let alone what is being said.If you don’t already have the Guardian app, download it (iOS/Android) and go to the menu.

Select ‘Secure Messaging’.Our guide at theguardian.com/tips lists several ways to contact us securely, and discusses the pros and cons of each.When Aria was set up, it was controversially exempt from freedom of information laws, and, for the first years of its operation, it published no details about its grantees.Set up to be free from “red tape”, it remains unclear if Aria has strict guidelines on how much of its funding can go to non-UK businesses.

A recent report by the environmental group ETC described Aria as “bringing Silicon Valley’s free-market fundamentalism and its ‘move fast and break things’ ethos to disrupt the buttoned-up British science establishment”,A number of the US companies Aria has funded appear to be early-stage ventures,Several of these, such as MorphoAI and Sangtera, already have powerful US backers including the incubator Y Combinator and theNational Science Foundation, a federal agency,Were they to achieve a breakthrough, it is unclear how, or if, that advance would directly benefit the UK,ARIA insisted that it has “contractual protections” ensuring benefits flow back to Britain, but it is not clear how this works in practice.

The agency’s “standard approach” is not to take shares or intellectual property rights in the companies that it funds, according to its website,The Guardian understands ARIA requires a royalty fee to be paid to the UK on any IP commercialised outside the UK,In response to a query from the Guardian, MorphoAI said: “The Aria grant has created incredible opportunity for MorphoAI, allowing us to grow into the UK,Over 50% of our employees are now based in the UK, with the majority of our operations running from our London office, the fastest growing part of the business,”Sangtera did not respond to a request for comment.

Onwurah said Aria’s choice to fund US tech companies potentially came at the cost of funding untapped potential in the UK.“Aria allocates only a small share of its funding outside London and the south-east – the West Midlands, for example, receives just 0.8%.It’s disappointing to see reports of Aria’s substantial investment overseas whilst such stark regional imbalances persist at home,” she said.Rikap said US tech companies “are intellectual monopolies that present themselves as contributing to public knowledge, all the while finding ways to monetise it”.

“Data and knowledge are co-produced with universities and local companies but always following the priorities of big tech, so that whatever new research is developed, it remains within the platforms and ecosystems that they control.”
trendingSee all
A picture

Shipping firms question safety in strait of Hormuz despite Trump plan

The world’s shipping industry has questioned whether vessels will be able to travel safely to and from the Gulf after Donald Trump announced his latest plan to open the strait of Hormuz.Trump wrote on Monday that the US navy would “guide” stranded ships out of the waterway, writing on his social media site Truth Social that the operation, “Project Freedom”, would be a humanitarian gesture “on behalf of the United States, Middle Eastern Countries but, in particular, the Country of Iran”.But within hours Iran’s Fars news agency reported a US warship intending to pass through the strait had been hit by two missiles and turned back after ignoring an Iranian warning. The US denied its ship had been hit. Brent crude rose about 2% to $110

A picture

UK food prices on track to rise by 50% since start of cost of living crisis

Food prices are on track to be 50% higher in November than at the start of the cost of living crisis in 2021, research suggests.Climate and energy shocks have driven an almost quadrupling of the pace of food price growth, according to research from the thinktank Energy and Climate Intelligence Unit (ECIU), with costs rising in five years at about the same rate as they had over the previous two decades.Anna Taylor, the executive director of the Food Foundation charity, said: “Food prices rising this high and this fast leaves families on the lowest incomes with nowhere left to cut except the food on their plate. When that happens, people skip meals, children go hungry, and diet-related illness rises – taking parents out of work and piling pressure on an NHS that can least afford it.”The research suggests that the cost of living crisis, which many voters blame on political elites and big business, is likely to continue to be an important political issue during 2026

A picture

AI facial recognition oversight lagging far behind technology, watchdogs warn

Britain’s biometrics watchdogs have warned that national oversight of AI-powered face scanning to catch criminals is lagging far behind the technology’s rapid growth.With the Metropolitan police almost doubling the number of faces they scan in London over the past 12 months and a rising use of the technology by retailers in the UK, Prof William Webster, the biometrics commissioner for England and Wales, said the “slow pace of legislation was trying to catch up with the real world” and “the horse had gone before the cart”.Dr Brian Plastow, who holds the same role in Scotland, warned the technology was “nowhere near as effective as the police claim it is” and said there was a “patchwork legal framework” throughout the UK. He said in England and Wales, police were “really just marking their own homework”.The watchdogs said new laws were needed to govern when and how police forces used live facial recognition technology, with a new regulator to clamp down on misuse

A picture

Guilty until proven innocent: shoppers falsely identified by facial recognition system struggle to clear their names

When Ian Clayton, a retired health and safety professional from Chester, popped into Home Bargains one February lunchtime, he was suddenly approached by a stern-looking member of staff.“Excuse me, can you please put everything down and leave the shop now?” she said. Clayton recalled how he was stunned, and it was only as he was briskly walked past the tills towards the exit that he stopped to ask what he had done.“You’ve come up on our system called Facewatch as a shoplifter,” came the reply. “There’s a poster in the window

A picture

‘Get rid of the battery’: F1 under increasing pressure to make more changes to engine rules

Formula One is under increasing pressure to consider immediate changes and the long-term future of its new engines, with the world champion Lando Norris reiterating after the Miami Grand Prix that the only answer to address the sport-wide dissatisfaction was to “get rid of the battery”.At the race in Florida, which was won by Mercedes’ Kimi Antonelli, with Norris second, F1 and the FIA had brought in fresh regulations to address unhappiness and safety concerns prompted by the pivotal role energy management plays under the new 2026 formula.There has been widespread criticism of the formula – which employs almost a 50-50 split between the internal combustion engine (ICE) and electrical energy. And while the adjustments to mitigate the issues which came in this weekend were considered successful, the long-term distaste remains, as Norris noted.“It’s a small step in the right direction but it’s not to the level that Formula One should still be at yet,” he said

A picture

John Sterling, beloved voice of Yankees for 36 seasons, dies at 87

John Sterling, whose voice became synonymous with the New York Yankees, has died at the age of 87.Sterling, a native New Yorker, started broadcasting Yankees games on radio in 1989 and continued until he retired in April 2024. During that span, he called 5,420 regular-season games and 211 in the postseason. He rarely missed a game and worked 5,060 consecutive games between 1989 and 2019. During one memorable game in 2023, he was hit by a foul ball during a broadcast and returned to work the next day