OpenAI pauses UK Stargate project

The company stated that while it remains optimistic about the UK's long-term potential, current conditions are not conducive to the massive infrastructure investment required for its next generation of AI models.

This move follows a similar pause in other European markets as tech giants grapple with the energy shocks triggered by the Middle East conflict.

Critics of the government's 'Net Zero' policies argue that the rapid transition to renewables has made the UK uncompetitive for power-hungry industries like AI and cloud computing.

OpenAI is now reportedly exploring alternative sites in North America and Asia where energy costs are more predictable.