The floating of a £2 billion ChatGPT deal could be interpreted as a clever negotiation tactic within the UK’s larger play to attract Big Tech investment. By engaging in such ambitious talks with OpenAI, the government sends a powerful signal to its competitors, Google and Anthropic.
The message is clear: the UK is willing to consider massive, strategic partnerships, and tech giants must make compelling offers to secure their place in this key market. The news that the government is in high-level talks with one AI leader can spur others to accelerate their own investment plans and partnership proposals to avoid being left out.
Even if the £2 billion deal with OpenAI was never a serious prospect for minister Peter Kyle, the public knowledge of the conversation serves a strategic purpose. It enhances the UK’s reputation as a proactive and ambitious player in the AI space and increases its leverage in negotiations with all tech firms.
This perspective recasts the story from a simple “scrapped deal” to a single move in a complex, multi-sided negotiation. It’s part of a broader charm offensive designed to maximise investment and collaboration from a competitive field of AI developers.
