UK Tech Sector Hits $1.2 Trillion Amid AI & Fintech Investment Surge
Muhammad Naeem:
Islamabad:
Britain’s tech sector has smashed through the $1.2 trillion mark, growing by 20 percent since last year and overtaking France and Germany combined, according to the Tech Nation 2025 report .
At London Tech Week, Dutch fintech Liquidity made a major splash by confirming a £1.5 billion investment to set its European HQ in London—underscoring strong investor faith in the UK fintech space.
Prime Minister Keir Starmer, speaking at the same event, unveiled a multi-billion-pound plan to turbocharge the national AI infrastructure: a £1 billion boost to computing capacity, an £86 billion science-and-tech funding package, and a revamped digital procurement system expected to save £1.2 billion in public sector spending
Education also takes centre stage. Nvidia pledged £185 million to create an AI centre in Bristol and train 7.5 million AI-ready workers by 2030. Simultaneously, the government launched the Spärck AI scholarships, funding master’s degrees at nine of Britain’s top universities.
From a business perspective, Microsoft and Barclays made headlines with their plan to deploy 100,000 Copilot AI agents, in what could become the largest AI rollout in UK banking .
The event saw Mistral AI, a French startup, debut its Magistral multilingual reasoning model—evidence that Europe is staking its claim in advanced AI. Meanwhile, the OpenBind consortium, backed by government investment, aims to use AI to transform drug discovery—potentially cutting the cost of bringing new medicines to market by £100 billion .
Public health and science also benefited from fresh funding: the government granted £82.6 million to three AI-backed health projects, including PharosAI and Bind Research, to speed up drug development and improve cancer care Finally, the focus on innovation is truly national. Cities outside London, from Edinburgh to Warwick, are receiving fresh funding and infrastructure investment—part of a broader strategy to decentralize technology growth and cultivate regional hubs.
