A US tech giant, founded by one of Donald Trump’s most prominent billionaire supporters, has committed to a substantial $5 billion investment in Britain, signaling a major vote of confidence in the UK’s technology sector.
Oracle, led by Larry Ellison, a close ally of the former president, is planning to significantly expand its data center infrastructure and support the growing adoption of artificial intelligence (AI) across British businesses.
What Oracle’s $5 billion commitment means
Larry Ellison, the world’s fifth-richest individual with a staggering fortune of $169 billion, founded Oracle in 1977 and currently serves as its executive chairman and chief technology officer.
Beyond his business acumen, Ellison is also known for his political connections.
He has been a key backer of Trump, as well as a close associate of Elon Musk, previously holding a seat on Tesla’s board and investing in Musk’s acquisition of Twitter.
Oracle, one of the world’s leading providers of cloud computing services, stated that its $5 billion investment would enable it “to meet the rapidly growing demand for its cloud services in the UK.”
The company’s statement did not detail the exact allocation of funds, but indicated that the investment would be utilized to further develop its cloud infrastructure in the UK.
While Oracle currently operates data centers in both London and Newport, it remains unclear whether this new investment will involve constructing new facilities or expanding the existing ones.
However, the strategic importance of robust cloud infrastructure is clear.
AI systems require vast amounts of computing power that is typically concentrated in “hyperscale” data centers, making their presence crucial for supporting the growth of AI-driven businesses and applications.
Recognizing the importance of data centers for the UK’s technology sector, the Labour Party has made it a priority to streamline the process of building these facilities in Britain.
This proactive approach is aimed at attracting further investment and ensuring that the UK remains a competitive hub for innovation.
The UK government is already a significant Oracle customer, with various departments including the Departments for Work and Pensions, Environment, Food & Rural Affairs, the Ministry of Justice, and the Home Office relying on the company’s services.
Ellison’s philanthropic ties
Beyond his business and political interests, Ellison is also a major supporter of former British Prime Minister Sir Tony Blair, having pledged $375 million to Blair’s Institute for Global Change.
He has also funded a $1 billion Institute of Technology in Oxford, designed to support British start-ups in better commercializing their research.
Siobhan Wilson, Oracle’s UK head, underscored the company’s commitment to supporting the government’s vision for AI-driven growth, stating, “The UK Government’s vision is clear: use AI to help power the UK’s future. Today’s announcement cements Oracle’s commitment to supporting this vision.”
Echoing this sentiment, Technology Secretary Peter Kyle commented, as quoted by Reuters, “The UK is determined to lead the world in AI innovation, and today’s announcement from Oracle is a testament to our nation’s growing strength in this sector. This $5bn investment will accelerate our AI ambitions, providing businesses and public services with cutting-edge cloud infrastructure to drive productivity, enhance security, and unlock new opportunities for growth – driving forward our Plan for Change.”
TikTok in Oracle’s sights?
Adding another layer of intrigue, Oracle is reportedly in a leading position to potentially take over TikTok’s US operations should Trump move to force its Chinese owner to sell.
Politico reported that the company has been accelerating discussions with the White House regarding this potential acquisition.
As Oracle continues to expand its presence in the UK, its strategic positioning within the global technology landscape is becoming increasingly clear.
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