An investigation by the British newspaper Guardian has uncovered numerous shortcomings in the implementation of the UK’s ambitious plans for investment in artificial intelligence.
This is reported by Finway
- Some of the announced AI investments are not actual financial contributions.
- Some planned data centers exist only in project documentation.
- Early investors could see profits of up to 350,000%.
Real and Fake AI Investments: Investigation Details
Over the past two years, the UK government has actively proclaimed its intention to transform the country into a leading hub for artificial intelligence development. However, journalists have found that a significant portion of the announced investments is not backed by real actions. Particular attention has been given to the companies Nscale and CoreWeave, which are involved in creating infrastructure for AI and collaborating with chip manufacturer Nvidia.
One of the key projects is the construction of the Nscale supercomputer in Essex, which the government claims will be operational by the end of 2026 and become one of the most powerful AI centers in the world. However, journalists visiting the site in Lafton discovered that the area is still being used by another company for storing construction scaffolding. The land registry does not confirm that Nscale owns this plot.
The investigation also revealed that the UK government effectively does not monitor or verify the investments claimed by companies. All amounts mentioned in official statements come from the investors themselves, and their authenticity is not verified by independent experts.
“These claims do not undergo independent verification, emphasized the UK government.”
Some “investments” are not monetary but consist of equipment purchases: companies plan to acquire a significant number of Nvidia chips and place them in UK data centers to subsequently lease computing power, including to American tech giants.
Disputes Over Investor Profits and Infrastructure
Some companies involved in the projects have already provided record profits for early investors: shares of Nscale, which previously cost about a cent, skyrocketed tens of thousands of times after securing $2 billion in investments and a company valuation of $14.6 billion. Analysts estimate that the profit percentage could reach 350,000%.
CoreWeave, another key company, conducted an IPO in 2025, after which its shares sharply increased in price amid the overall hype surrounding AI. However, over the past six months, the stock price has decreased by nearly 40%.
Additionally, the company has become the subject of a class-action lawsuit from investors who accuse CoreWeave of concealing information about delays in the construction of data centers. The company’s management denies these allegations and plans to defend its position in court.
Another issue is energy supply: one of the planned data centers in Scotland may require up to 1 GW of electricity — comparable to the output of a nuclear reactor. Meanwhile, the company DataVita, which is a partner in the project, currently has no concrete plans for creating an energy infrastructure of such scale.