The US will pour £31bn into UK AI – are we ready for it? Startup Daddy, Varun Bhanot offers his perspective on the UK's AI gold rush and what it means for tech founders like himself. Written by Varun Bhanot Updated on 1 October 2025 Our experts We are a team of writers, experimenters and researchers providing you with the best advice with zero bias or partiality. Written and reviewed by: Varun Bhanot US funding is coming towards the UK’s Artificial Intelligence sector like a tidal wave. AI was already the darling of venture capitalists, startups, and big tech companies. But, the recent, massive inflow of US venture capital into AI research in Britain – £31 billion at the last count – has rewired the game for tech entrepreneurs like me.First and foremost, this funding from some of America’s top tech firms, like Microsoft, Google, and OpenAI, marks in a very loud and clear way that AI will define the future of technology. The discussion is no longer “what if?”, but “how soon?”In a few years, AI has gone from a mere concept, to a promising reality that could revolutionise every industry. For us founders, that has brought both exhilaration and dread. It’s almost like the pace has doubled, and with it, the expectations. Verifying Get the latest Startup Daddy column, straight to your inbox Stay informed on the top business stories with Startups.co.uk’s weekly newsletter Please fill in your name Please fill in your email Subscribe By signing up to receive our newsletter, you agree to our Privacy Policy. You can unsubscribe at any time. Every other country will follow when the US makes any big decision, so we have to keep one step ahead of the game. It is our duty as entrepreneurs to seize this opportunity to the fullest and at the same time, navigate through the competition, laws, and public trust.Of course, capital investment is only one aspect of the story. The injection of more funds means the arrival of the best talent to the UK. AI has lured away the best minds worldwide for the sole purpose of figuring out the future.For a founder, it’s both good and bad. The competition to attract and retain top talent has become more cutthroat. The mad rush for investments in AI has definitely brought about a competitive spirit in the tech industry, with startups vying to be the next big thing. People want to be part of this revolution, and AI is their chance.Nevertheless, the influx of this talent also poses an ethical issue. Steering AI evolution towards healthcare, education, and governance is a huge responsibility. As founders, we have to find the right balance between innovation and ethics. Our teams’ attention cannot simply be on products and profits. Their focus must be on the impact we have on the world.Because while the main goal of these US investors may be to get good returns, there is also a strong expectation from consumers that AI firms will benefit society.AI can revolutionise everything, from our work procedures to our lifestyles. As businesspeople, we must be deliberate and careful in how we apply it. Specifically, we must make sure that our breakthroughs reflect the values that we want to exist.With the UK now holding one of the world’s largest AI funding packets, we will no longer just be making this technology. We will also be determining its role globally. About Varun Bhanot Varun Bhanot is Co-founder and CEO of MAGIC AI, the cutting-edge AI mirror that makes high-quality fitness coaching more accessible. Under his leadership, MAGIC AI has raised $5 million in venture funding and earned multiple industry accolades — including being named one of TIME’s Best Inventions of 2024. As a new father as well as founder, Varun shares candid insights on balancing parenting and entrepreneurship in his bi-monthly guest column, Startup Daddy. Learn more about MAGIC AI Share this post facebook twitter linkedin Tags News and Features Written by: Varun Bhanot