Trump Ally Larry Ellison's Oracle Pledges $5 Billion To Boost UK's AI-Driven Cloud Infrastructure

In a move to tap into the growing artificial intelligence (AI) industry in the U.K., Oracle Corp. ORCL has pledged to invest $5 billion in the country over the next five years.

What Happened: On Monday, Oracle announced that the investment aims to expand the Oracle Cloud Infrastructure’s footprint in the U.K. and support the U.K. government’s drive for AI innovation and adoption.

“By collaborating with global tech leaders like Oracle, we’re solidifying the UK’s position at the forefront of the AI revolution,” stated Britain's technology minister Peter Kyle in a joint statement.

“The investment will expand Oracle Cloud Infrastructure’s footprint in the UK and help the UK government deliver on its vision for AI innovation and adoption,” stated Oracle.

At present, the UK has the world’s third-largest AI industry, lagging only behind the United States and China. The Starmer administration estimates that AI could contribute £47 billion ($61 billion) annually to the UK economy over the next decade.

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Why It Matters: U.K. Prime Minister Keir Starmer is focused on easing regulatory barriers to secure substantial investment to help establish the nation as a leading “AI superpower.”

Interestingly, Oracle’s founder Larry Ellison, who is expected to play a pivotal role in this initiative, is a long-time supporter of U.S. President Donald Trump, and a close friend of Tesla Inc. TSLA CEO Elon Musk.

U.K. PM Starmer is in also talks with the Trump administration to reach a post-Brexit trade deal.

This investment comes at a time when Oracle is reportedly in advanced talks with the White House to manage the U.S. operations of the Chinese short video app TikTok, amid ongoing concerns about national security.

The UK’s strategic push into AI, backed by Oracle’s investment, could potentially reshape the global AI landscape, positioning the UK as a leading player in this rapidly evolving field.

Oracle stock climbed 3.2% to close at $154.01 on Monday, as per Benzinga Pro.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.