Oracle, the US technology giant founded by a major billionaire backer of Donald Trump, has announced plans to invest $5bn (£3.9bn) in the UK.
The company, which was co-founded by Larry Ellison, said it will invest the money over the next five years to ‘meet the rapidly growing demand for its cloud services in the UK’.
Ellison is the world’s fifth-richest man with a $169bn fortune and is a prominent supporter of the US president.
Oracle, which in 2023 was the third largest technology company in the world by revenue behind Microsoft and Google, is the title sponsor of the Red Bull F1 team.
The investment will expand Oracle Cloud Infrastructure’s (OCI) footprint in the UK and aim to help the government deliver on its vision for AI innovation and adoption.
Siobhan Wilson, senior vice president and country leader, Oracle UK, said: “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. Oracle provides the world’s best cloud infrastructure for AI learning and inferencing.
“Our cloud investment will help ensure that customers can use AI to achieve new levels of productivity, unlock growth, and benefit from superior performance and security, all with improved cost savings.”
Oracle: UK sales pass£2bn for the first time
Earlier this month, City AM reported that Oracle had posted sales in the UK of more than £2bn for the first time as its profit jumped by over 20 per cent.
New accounts filed with Companies House revealed that the group’s UK turnover increased from £1.9bn to £2.2bn in the 12 months to 31 May, 2024.
The latest total continues a run of consecutive years of turnover increases for Oracle which dates back to 2018 when its UK sales stood at just under £1.6bn.
The results also show that Oracle’s pre-tax profit surged from £62.6m to £87.9m over the same period.
Secretary of state for science, innovation and technology Peter Kyle said: “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.
“By working with global tech leaders like Oracle, we’re cementing the UK’s position at the forefront of the AI revolution, creating high-skilled jobs, fueling innovation, and securing our place as a world-leading tech powerhouse.”