The UK and U.S. have agreed to a landmark $42 billion technology pact called the “Tech Prosperity Deal” to mark President Donald Trump’s second state visit to Britain.
Top U.S. tech names led by Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), and Google (NASDAQ:GOOG) pledged a total of 31 billion pounds ($42 billion) in UK investments, primarily targeting artificial intelligence, quantum computing, and nuclear energy advancements.
The UK’s Prime Minister Keir Starmer said that deal “marks a generational step change in our relationship with the US, shaping the futures of millions of people on both sides of the Atlantic, and delivering growth, security and opportunity up and down the country.”
“By teaming-up with world-class companies from both the UK and US, we’re laying the foundations for a future where together we are world leaders in the technology of tomorrow, creating highly skilled jobs, putting more money in people’s pockets and ensuring this partnership benefits every corner of the United Kingdom,” he added.
Microsoft (NASDAQ:MSFT) unveiled a plan to spend $30 billion in the UK over four years, with half of the amount going towards cloud computing and artificial intelligence infrastructure. Satya Nadella, chair and CEO of Microsoft (MSFT), said it wanted to ensure that America remained a trusted and reliable tech partner for Britain.
Under the deals announced, chipmaker Nvidia (NASDAQ:NVDA) said it would deploy 120,000 graphics processing units across Britain—its largest rollout in Europe to date. “We are at the Big Bang of the AI era—and the United Kingdom stands in a Goldilocks position, where world-class talent, research and industry converge.” CEO Jensen Huang commented.
Separately, Google (NASDAQ:GOOG) (NASDAQ:GOOGL) announced plans to open its data center in Waltham Cross, Hertfordshire, as part of a two-year £5B investment in the UK.
ETFs to track the broader U.S. markets: (NYSEARCA:SPY), (NYSEARCA:VOO), (NYSEARCA:IVV), (NYSEARCA:RSP), (NYSEARCA:SSO), (NYSEARCA:UPRO), (NYSEARCA:SH), (NYSEARCA:SDS), and (NYSEARCA:SPXU).
ETFs to track UK markets: (NYSEARCA:FXB), (NYSEARCA:EWU), (NASDAQ:FKU), (BATS:EWUS), (NYSEARCA:FLGB).
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