UK risks losing DeepMind talent and AI start-ups to the US

In short: The UK has a growing wave of AI start-ups, but a lack of UK investment money and stronger US pull could limit the benefits.

What's going on

Britain has built a strong track record in artificial intelligence, helped by Google DeepMind, an AI research lab founded in London in 2010. A Financial Times opinion column says the UK is now seeing many new companies started by people who worked at DeepMind.

New data from Sifted, an FT-backed publication, says 32 percent of the 250 fastest-growing early-stage start-ups in Europe are from the UK. Several London AI start-ups are mentioned, including Wayve, ElevenLabs, and Synthesia. These firms work on tools for self-driving cars, generated audio, and generated video.

The concern is that some founders and researchers may move to the US. The column points to higher taxes and energy costs at home, and the attraction of more money and momentum in places like California.

It also notes signs that Google is shifting more of its AI focus back to the US, which has reportedly led to departures from DeepMind in London. Research tracker Zeki found that more DeepMind researchers have left for US rivals such as Anthropic and OpenAI than have moved in the other direction.

What to watch

The next 12 to 18 months could be important for whether these UK companies grow into long-lasting businesses or relocate. The UK government has said it is moving quickly on issues like non-compete clauses, which can limit where employees can work next, and it has promised more public contracts for UK start-ups. Investors in UK pension funds and other large institutions will also be watched closely, since the column argues more of that money needs to back UK companies, rather than relying on overseas funding.

Source: Financial Times