UK Discusses £2bn AI Access Deal with OpenAI Chief

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A potential multi-billion-pound agreement to provide UK residents with premium access to OpenAI’s artificial intelligence tools, including ChatGPT, was discussed earlier this year between Technology Secretary Peter Kyle and OpenAI co-founder Sam Altman.

According to reports, the proposal, estimated at up to £2 billion, was raised during meetings between Mr Kyle and Mr Altman in March and April during the minister’s visit to San Francisco. Sources familiar with the discussions stated that the offer was not taken forward but reflected the government’s ongoing interest in artificial intelligence adoption across public services.

The suggested arrangement would have given UK citizens enhanced access to OpenAI’s paid version of ChatGPT, which currently costs around $20 per month, providing faster responses and early access to new features.

In July, Mr Kyle signed a non-binding agreement with OpenAI that could pave the way for the use of the company’s technology in areas including defence, education, security, and the justice system. However, the government has not committed to any large-scale purchase of AI services at this stage.

Peter Kyle, who became Technology Secretary earlier this year, has been vocal about the potential benefits of artificial intelligence. He has previously acknowledged using AI tools for policy advice and communications support, including inquiries about small business adoption of AI and recommendations for public outreach.

The UK government is positioning AI as a key driver of economic growth and efficiency. Prime Minister Sir Keir Starmer recently highlighted plans to expand AI integration within government departments, projecting potential efficiency savings of up to £45 billion. He stated that specialist teams would be deployed across ministries to identify opportunities for innovation and improved public service delivery.

Despite the enthusiasm, concerns remain over the reliability, copyright, and privacy implications of large-scale AI adoption. A government spokesperson said: “We do not recognise the claims of a specific £2bn deal. We continue to work with OpenAI and other major AI firms to explore responsible investment in UK infrastructure, enhance public services, and thoroughly test the security of any new technology before its public release.”

OpenAI currently provides free access to ChatGPT, with an optional paid subscription offering enhanced features. The company’s discussions with the UK government form part of broader efforts to develop partnerships while navigating increasing global scrutiny of artificial intelligence applications.