The British government has announced the purchase of artificial intelligence chips from local startups, supposedly to prevent foreign companies, especially from the U.S. and Japan, from acquiring their technology. The measure aims to retain the tech industry by guaranteeing revenue for these young companies. However, beneath this gesture of industrial patriotism lies a less heroic reality.
Chip performance and the hidden cost to taxpayers đź’·
The acquired chips do not compete in performance with those from Nvidia or AMD, market leaders. Unable to find private buyers, the startups turned to the state as a forced customer. The processors will be installed in public servers that do not require such power, generating inefficient spending with taxpayer money. Additionally, the government will impose confidentiality clauses to hide the actual price, which is well above market value.
Technological nationalism: the perfect excuse to subsidize cronies 🤝
The plan is simple: while founders wait for retirement age to sell the company to foreign investors, taxpayers fund their R&D at inflated prices. They call it retaining the industry, but it sounds more like a bailout for startups that couldn't even sell their chips at a flea market. In the end, the best way to compete is not to buy from yourself, but to be competitive. But that doesn't make headlines or subsidize government friends.