A Tech Memorandum: what it is and why now?
During the recent second state visit by Donald Trump to the UK, Jensen Huang told the BBC: "This is the week that I declare the UK will be an AI superpower," His reason for making such a bold claim? The United States and the United Kingdom have signed a new memorandum of understanding that sets the stage for sweeping cooperation in science and technology, with artificial intelligence at its core. The agreement, called the Technology Prosperity Deal, is not legally binding but signals a deepening alliance at a moment of massive U.S. investment in Britain’s technology sector.
The memorandum sets out a framework for closer collaboration between the United States and the United Kingdom, committing both governments to establish a ministerial-level working group within six months and hold annual meetings to shape priorities and track progress. At its core, the agreement seeks to leverage shared strengths to secure leadership in frontier technologies while delivering tangible benefits for citizens in both nations. Artificial intelligence is the centerpiece, described as the “defining technology of our age,” with plans to expand research infrastructure, improve access to high-powered computing, and launch joint flagship initiatives in biotechnology, precision medicine, and energy. Both governments also pledged to advance pro-innovation policy frameworks and support AI exports, underlining their shared ambition to dominate the sector. Beyond AI, the memorandum highlights nuclear energy, with goals to streamline regulatory approvals for next-generation reactors and end reliance on Russian nuclear fuel by 2028, and quantum computing, where a new bilateral task force will accelerate algorithm development and foster industry partnerships. The pact also broadens into areas such as research security, 6G technologies, and digital resilience, marking a wide-ranging effort to strengthen transatlantic leadership in science and technology.
The timing was deliberate. The memorandum was signed September 18, 2025, during President Donald Trump’s state visit, alongside announcements of more than £150 billion in U.S. tech investment, including Microsoft’s record $30 billion UK commitment. Prime Minister Keir Starmer hailed the pact as a “generational step change” for Britain’s economy. Analysts say the accord reflects both nations’ desire to strengthen their strategic leadership in technology, rekindling talk of a new “special relationship” built not just on defense, but on innovation.
The Memorandum at a Glance
Official Fanfare - Media Scepticism
The Deal was rolled out with great fanfare, as per Starmer's description of it as a “generational step change” or Nvidia’s Jensen Huang's proclamation of the UK as uniquely placed to become an “AI superpower”. Government releases promised life-changing breakthroughs in medicine, faster drug discovery, and advances in cancer care, with officials framing the memorandum as both a symbol of Britain’s economic strength and a landmark moment in the transatlantic partnership. The BBC also repeated the Prime Minister's description of it as "a testament to Britain's economic strength".
But the official celebration was tempered by sharp skepticism. Former Deputy Prime Minister Nick Clegg dismissed the billions in U.S. commitments as “crumbs from the Silicon Valley table,” warning Britain was clinging to “Uncle Sam’s coat-tails” rather than standing on its own. Critics cautioned that the deal risked deepening the UK’s dependence on American firms, with one analysis warning the country could end up a “tech laboratory” for U.S. giants. Others pointed to the mismatch between the optimism of foreign investors and the reality of a domestic economy where rising costs have forced British businesses, and even global players like Merck and AstraZeneca, to pull back on UK investments.
Concerns also extended to the hidden costs of the agreement. Microsoft President Brad Smith noted the new regulatory climate had made such investment “conceivable” only after Britain softened its stance on competition policy, raising questions over what concessions had been made. Environmentalists warned of vast energy-hungry data centers that could undermine net-zero targets, with the International Energy Agency predicting electricity demand from global data infrastructure will more than double by 2030. Water scarcity risks and evidence of AI’s social harms — from eroding students’ cognitive skills to tragedies linked to chatbot misuse — deepened the unease. Critics called for a more deliberate approach, urging the UK to resist the “Klondike gold rush” mentality and weigh the long-term societal and environmental impacts of its tech ambitions.
This article was co-created with AI.