UK Tech Firms Agree Takeovers as Starmer Backs AI Future
Two UK tech firms have agreed to takeovers by US rivals on the day Prime Minister Sir Keir Starmer emphasized the importance of tech and AI to the UK economy. US chipmaker Qualcomm revealed a $2.4bn (£1.8bn) takeover of Alphawave, a UK firm that designs semiconductors attractive in artificial intelligence (AI) development. Shareholders will receive 183p per share, representing a 95% premium to the price before Qualcomm disclosed its interest.
In a separate announcement, Maryland-based IonQ agreed to acquire quantum computing startup Oxford Ionics for $1.1bn (£820m). Both deals have raised concerns about UK firms’ ability to resist takeover interest. Softbank-owned chipmaker ARM had also been chasing Alphawave but walked away. The UK company’s ‘serdes’ technology is considered the main prize in the Qualcomm deal, as it underpins the speed at which data is processed by chips – crucial for AI development.
During his speech at London Tech Week, Starmer stated, “AI and tech makes us more human, which sounds an odd thing to say, but it’s true.” He acknowledged public skepticism about AI, saying, “For people listening to us, they worry about will it make their lives more complicated?” Starmer emphasized the need for collaborative work through this change.
The government has launched a new partnership with industry leaders, including Nvidia, Amazon, Google, and BT, to train 7.5 million UK workers in essential AI skills by 2030. A ‘TechFirst’ initiative will also roll out AI training to every secondary school over three years.
The takeovers reflect the attractiveness of UK firms to US investors due to cheap valuations and a weak pound. The government has moved to make UK listings more attractive as part of its growth agenda, following concerns that several UK-listed firms have shifted primary listings to the United States to attract greater investment.
