Peter Kyle touts US opportunities as OpenAI pauses UK investment
Business secretary Peter Kyle has insisted Britain’s economic ties with the US are strong despite political tensions, in what he dubbed a “really great economic set of opportunities” between the two countries.
Speaking ahead of a major trade mission to California, Kyle was optimistic about transatlantic relations, despite rhetoric from Trump straining diplomatic ties.
“The US president is a master at using rhetoric”, Kyle said. “If he feels really happy about something, you know it, if he’s frustrated about something, you know it, and he’s very comfortable saying this in public”.
“Now sometimes that’s disruptive, but not for our prime minister. Keir Starmer has always been absolutely steadfast.”
Kyle pointed to the scale of economic cooperation already underway, adding: “That’s why Britain has been so successful in landing trade deal after trade deal, it’s why Britain has been so successful in building a really great economic set of opportunities with America.
“Don’t forget that the tech partnership between the US and the UK has unleashed, or is unleashing, $300bn (£223bn) worth of commercial activity.
“So, even when there are moments of rhetorical challenges, the business of delivering opportunities for business to business, commercial activity between our two nations has never been greater.”
The comments come as the government prepares to send around 250 delegates to a Los Angeles summit aimed at boosting investment ties, with the likes of British Airways and PwC set to attend.
AI ambitions face reality check
Kyle’s words come despite fresh scrutiny UK’s ability to attract major US tech investment, after OpenAI paused its flagship AI infrastructure project.
The company has put its planned Stargate UK initiative on hold, saying the “right conditions” are not yet in place, citing high energy costs and regulatory uncertainty.
The project had been billed as a major vote of confidence in Britain’s AI strategy, with plans to deploy thousands of advanced chips supplied by Nvidia through a partnership with London-based data centre giant Nscale.
OpenAI said it would only proceed when issues such as the cost of power and predictable regulation, including around copyright rules for training AI systems, are resolved.
The blow piles further pressure on ministers’ ambitions for the UK as a global AI hub, especially as competition intensifies from across the pond, and other regions offering cheaper energy and faster planning approvals for large-scale data centres.
While the government has chosen several AI growth zones to accelerate infrastructure development, concerns have been raised over delays and high energy prices.