Business Secretary Kyle Regrets ARM Holdings Sale, Pledges Increased State Investment in UK Tech
Business Secretary Peter Kyle has indicated he would have intervened to prevent the 2016 acquisition of UK microchip firm ARM Holdings by Japanese conglomerate Softbank. Kyle, speaking during London Tech Week, asserted that ARM, once a prominent fixture on the London Stock Exchange before its New York listing in 2023, could have achieved significant valuation as a UK-domiciled entity, potentially reaching '40% of the way' to a trillion-dollar valuation.
Kyle also expressed regret over Google's 2014 acquisition of pioneering AI company DeepMind, noting that while its operations remain in the UK, 'the wealth that it has created is going elsewhere'. These comments coincide with new government plans to bolster British technology, as major US tech players like SpaceX, Anthropic, and OpenAI prepare for significant share offerings in New York.
The government's strategy includes increasing direct taxpayer investment in burgeoning companies and establishing a cross-government 'concierge service' to provide support, skills, and financing. Kyle stated he has 'upped the risk threshold', prioritising proactive engagement with emerging technologies like AI over excessive caution. Recent public money commitments include investments in energy software company Kraken, self-driving firm Wayve, and the UK tech-focused Playground Global investment fund.
Despite this focus on tech, Kyle acknowledged difficulties in other sectors, particularly hospitality, which faces pressures from rising national living wage and National Insurance contributions. He also addressed concerns raised by former Health Secretary Alan Milburn regarding a 'lost generation' of young workers, with over one million individuals currently not in employment, education, or training. Kyle affirmed the government is 'working closely with Alan to see what actions we can take to tackle this'.
