Minister Kanishka Narayan unveils ambitious artificial intelligence investment plan and startup growth strategy at Founders Forum in London

On 10 February 2026, Kanishka Narayan, the UK Minister for AI and Online Safety, addressed a packed audience at the Founders Forum in London, laying out the government’s bold vision for artificial intelligence, startup growth, and the future of British technology.

Speaking from the London AI Hub, Narayan highlighted the country’s ambition to balance innovation with ethical responsibility and human agency.

Drawing Lessons from History

Narayan drew an analogy from London’s industrial past, noting the Great Exhibition of 1851, where early mass-produced goods, described by William Morris as “shoddy,” sparked debate about machines versus human craftsmanship.

He reminded attendees that Morris did not reject technology but demanded it serve human creativity, a lesson Narayan sees as relevant today.

With AI rapidly reshaping work, society, and culture, the minister asked: Do machines serve us, or do we serve them?

He emphasized that today’s challenge for British startups and policymakers mirrors that question: balancing technological progress with human dignity, labour, and aesthetics.

Supporting British Startups with Bold Measures

Narayan turned to concrete measures, noting that UK startups raised $24 billion in venture capital in 2025, a nearly 35% increase from the previous year, and AI startups alone secured almost $8 billion.

He credited these achievements to renewed confidence in British tech infrastructure and supportive policies.

He outlined reforms to Enterprise Management Incentives, pensions, research funding, and scale-up capital that, in his view, restored Britain’s “buccaneering” entrepreneurial spirit, previously constrained by frozen wages and stagnant public services.

Celebrating Founders and Female Leadership

Narayan stressed the importance of recognising innovators driving the UK’s global tech leadership.

He highlighted successes from ARM, Acorn Computers, DeepMind, Skyscanner, THG, and others as examples of entrepreneurial teams spreading opportunity across regions.

He also underscored efforts to promote diversity in technology.

Through the Women in Tech Taskforce, the government aims to dismantle barriers preventing women from founding or scaling businesses.

Narayan noted that female-founded startups could add £250 billion to the UK economy if supported at parity with men.

AI Infrastructure and National Strategy

The minister announced a suite of AI-focused initiatives, including:

• £28 billion in AI Growth Zone infrastructure, creating thousands of tech jobs in the North East, Wales, and Lanarkshire.

• £27 million for TechLocal, expanding skills training and job placement in tech nationwide.

• AI Research Resource (AIRR), a £1 billion public compute project supporting research and startups.

• Establishing a Sovereign AI Unit with £500 million to invest in high-potential UK AI ventures.

Narayan emphasized the principle of agency, arguing that AI should extend human capability rather than concentrate power in the hands of a few.

He cited historic examples like Raspberry Pi and UK Biobank as precedents for extending opportunity to citizens and researchers.

Investing in Regional Strengths

The speech highlighted the importance of regional tech clusters, from semiconductor production in Wales to AI hardware startups in London and Bristol.

Narayan announced £100 million investment in Fractile, a UK AI inference chip startup, to expand operations and develop next-generation hardware, rooted in the legacy of ARM and Inmos.

He stressed that spreading opportunity across regions strengthens the economy and ensures that AI benefits are shared widely rather than concentrated in elite hubs.

Human-Centric AI and Open Source

Narayan reiterated the UK’s commitment to open-source AI development, pledging fellowships, infrastructure, and evaluation tools through the UK AI Security Institute (AISI).

He framed this as an ethical imperative: AI must empower humans and increase agency, not replace or diminish it.

What’s Next?

The minister signaled that the UK government will continue supporting founders with capital, compute, and policy frameworks, while actively fostering diversity and regional innovation.

Over the next five years, the UK aims to produce a trillion-dollar tech founder and cement its status as a global AI leader.

Startups and scale-ups should expect further investments in infrastructure, skills, and industrial hardware, while the government continues to measure success by real-world outcomes rather than rhetoric.

Summary

At the Founders Forum 2026, Minister Kanishka Narayan outlined a bold vision for UK AI and startup growth, combining historic lessons with modern policy.

He emphasized that technology should serve human agency, not replace it, and pledged extensive support for startups, AI infrastructure, skills training, and diversity initiatives.

Announcements included £28 billion for AI Growth Zones, a £1 billion public compute resource, and £100 million investment in Fractile, ensuring regional clusters and AI startups thrive.

Narayan also highlighted the importance of celebrating founders, promoting female leadership in tech, and maintaining the UK’s position as a global hub of innovation and open-source AI development.