The UK government has unveiled a £500mn initiative to support domestic artificial intelligence companies, marking a more interventionist approach to building national capability in a technology seen as critical to both economic growth and security.

The Sovereign AI Unit will operate with a mandate closer to that of a venture capital fund than a traditional public programme, combining direct investment with access to compute, talent and procurement channels. Ministers hope the model will help prevent promising start-ups from relocating overseas as they scale.

The first equity investment will be made in Callosum, while a further six companies, including Doubleword and Twig Bio, will gain access to the UK’s AI Research Resource supercomputing network. Officials said discussions were under way with around 30 additional firms.

The programme offers up to 1mn GPU hours per company, addressing a key constraint for AI developers: access to the computing power needed to train large models. It will also fast-track visa decisions for specialist hires, with initial allocations of cost-free visas intended to help companies recruit internationally.

The initiative reflects a growing concern in Whitehall that the UK risks becoming dependent on a small number of global technology providers for critical AI systems. By supporting companies earlier, the government aims to retain intellectual property and economic value domestically.

The launch took place at Wayve, one of the UK’s most prominent AI scale-ups. Alex Kendall said the scheme would help emerging companies compete internationally, while Alex DePledge noted that Britain’s longstanding challenge has been scaling firms rather than creating them.

The unit will also provide support navigating regulation, accessing datasets and securing early contracts, in an effort to accelerate commercialisation.

The move comes amid intensifying global competition for AI leadership, with governments in the US, Europe and Asia increasing support for domestic champions. For the UK, the Sovereign AI Unit represents a bet that a more hands-on strategy can translate research strength into globally competitive businesses.