UK to develop AI hardware plan as Kendall warns against over-reliance on foreign technology

Britain will develop an AI hardware plan to cut reliance on foreign chip suppliers, Technology Secretary Liz Kendall announced 28 April. Five companies currently control 70% of global AI computing power.

Categorized in: AI News Government
Published on: Apr 30, 2026
UK to develop AI hardware plan as Kendall warns against over-reliance on foreign technology

UK to develop AI hardware plan as government seeks greater control over critical technology

Britain must act now to secure its position in artificial intelligence or risk ceding control over its economic and national security, Technology Secretary Liz Kendall said on 28 April.

Speaking at the Royal United Services Institute, Kendall outlined a strategy to back British AI companies and build domestic capability in chips and semiconductors - the foundation of AI systems. The government will develop a UK AI hardware plan to reduce dependency on foreign suppliers.

Kendall drew parallels to historical technological shifts. Countries that mastered the defining technology of their era - from naval power to railways to electricity grids - pulled ahead economically and militarily. Today that technology is AI.

Concentration of power in few hands

Five companies now control 70 per cent of global AI computing power. Control over where AI systems are built, how they operate, and who ultimately controls them is now fundamental to economic security, energy security and defence security, Kendall said.

Britain has distinct advantages: a $1 trillion tech sector, world-leading universities, and institutions like the AI Security Institute that shape international approaches to AI safety. The strategy is to focus on areas where Britain can build real advantage - frontier research, companies, computing power, skills and infrastructure - rather than attempting to build everything domestically.

Sovereignty without isolation

Kendall rejected the notion that AI sovereignty means isolationism. Britain will continue using the best technology available and welcoming investment. Instead, the goal is reducing over-reliance on single suppliers and building resilience in key strategic areas.

The approach rests on two shifts: backing more British AI companies in areas of genuine strength, and working closely with international partners - particularly other middle-power nations - to set standards for how AI is deployed.

Kendall also rejected calls to pause AI development, calling such a move "a double betrayal" of British talent and interests. The real choice, she said, is between a Britain that shapes its own AI future and one that has AI futures imposed upon it.

For government officials involved in policy, strategy or procurement, understanding these shifts is essential. AI Learning Path for Policy Makers covers the strategic and governance dimensions of AI deployment in the public sector.


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