James Wise: This is how Britain wins the AI race

Docking at the King Charles III Space Station this week is James Wise: partner at Balderton Capital, author of Startup Century, and now the chair of the government’s Sovereign AI unit — a man who has spent twelve years giving exceptional people money to build companies and has now taken a tour of duty to do something stranger, which is to make the British state behave a little more like an investor and a little less like a grant machine. Tom and Calum want to know the obvious thing first: inside government, is anyone freaking out enough about AI? The good news, James says, is that most people are freaking out less than he is. That “British calm” is reassuring in a crisis and maddening in a transformation, and the real task is not getting one department to understand AI but getting the idea to diffuse across the whole of Whitehall the way a technology diffuses across an economy. Direction of travel is good. “But it’s a vector. We probably need to increase the speed.”

Sovereignty, James argues, is not autarky — it is leverage, and it comes in three levels. There is resilience, the floor, which simply means nobody can turn off your chips overnight: you don’t need British-only silicon, you need three or four suppliers. There is economic sovereignty, where Britain and ordinary Britons actually capture some of the upside — which is why he pushes back on DeepMind as a simple tale of loss, given the income taxes, the retained team, and the billions of Alphabet’s money that built it here. And there is the full-stack version, the flag on the building, legal and regulatory alignment with the British state. The naive dream — every electron and every wafer made between Somerset, Swindon and Glasgow — collapses on contact with the facts: a single token generated by a GPT model draws on something like 35 countries, ASML’s lithography machines are atom-level miracles the Americans and Chinese are pouring unlimited money into merely replicating, and the quartz comes from one mine in North Carolina. Doing the whole stack ourselves would be “beyond a Manhattan project” — it “would make Bletchley Park look like a weekend crossword.” ARM is the lesson: best in the world, and still unable to make a single chip alone. Sovereignty “is not end to end. It is having enough power to mean no one can turn you off.”

SovAI runs like a venture fund — taxpayer takes the loss, taxpayer keeps the upside — and the criticisms come from both sides at once: that the state should stay out entirel