GOD SAVE THE AI ! (UK) *** BREAKING MASSIVE ON GLOBAL AI!!! BLACKSTONE IN 13B END-RUN AROUND HAMSTRUNG EU AI MARKET
KEEP CALM AND AI ON!
There is a saying in law with respect to business and regulation that “water finds its own level.” This means that commerce will find a way to commerce, even around ‘structures’ of regulation…
In Europe. AI development followers are well aware of the EU’s recent hyper-restrictive “doomer” play on AI for the EU Market. The EU’s March 2024 AI Act detailed here:
Basics of the EU AI ACT:
First comprehensive legal framework on AI worldwide
Aims to foster trustworthy AI in Europe and beyond
Applies to providers placing AI systems on the EU market, regardless of their location
Has extraterritorial effect, applying to providers/deployers outside the EU if their AI output is used in the EU
Risk-Based Approach:
Classifies AI systems into four risk categories:
a) Unacceptable risk (prohibited)
b) High risk (heavily regulated)
c) Limited risk (transparency requirements)
d) Minimal risk (unregulated)
Key Provisions:
Prohibits certain AI practices deemed unacceptable risk (e.g., social scoring, manipulative AI)
Imposes strict requirements on high-risk AI systems
Requires transparency for limited risk AI (e.g., chatbots, deepfakes)
Introduces specific rules for general-purpose AI models
Governance:
Establishes an AI Office within the European Commission for oversight
Creates a system for complaints and investigations
Penalties:
Fines up to €35 million or 7% of global annual revenue for violations
Timeline:
Adopted by European Parliament on March 13, 2024
Expected to enter into force in May/June 2024
Most provisions applicable 2 years after entry into force
Prohibitions effective after 6 months
General-purpose AI rules effective after 12 months
Key Obligations for High-Risk AI Providers:
Ensure data quality and governance
Provide technical documentation
Enable logging and human oversight
Ensure accuracy, robustness, and cybersecurity
Register in EU database
Rational people concluded this act was a “death knell” for AI development in Europe.
And rightly so. The EU penchant for over-regulating and permit-and-fines-gated business development was at odds with the remarkable speed of AI tech development. AI was effectively “dead” to Europeans.
In England. I had previously speculated on X @AICounselDallas that England had the chance to “do something really funny” (actually massively Trillionly lucrative) in cashing its Brexit chip in to go all in for UK AI — “broadcasting” to the adjacent EU market.
Today Reuters reporting confirmed this massive plan; effectively an end-run around EU AI Regulation. “Water finding its level” It should be noted that the EU Act expressly said it was “extra-territorial” meaning they would loop into its ken any AI applications touching Europe from the outside.
So there will be a tension and legal interplay going forward, to put it most mildly.
The Capital Prospect for England is beyond massive and so will be worth the risk. It alone has the capacity to bring UK finances out of the doldrums and humming to recently unknown levels. Trillions.
And the UK has an “ace up its sleeve” as it has already classed its IT infrastructure as “critical national assets” legally, meaning it is a matter of sovereign prerogative (Trumping (not that Trump!) EU regs at least in theory).
The REUTERS REPORTING ON THE BLACKSTONE DEAL JUST BROKE THIS HOUR (TODAY — RIGHT NOW — AND AI COUNSEL HIT THE KEYBOARD FOR YOU!) SO DETAILS ARE SCARCE BUT HERE IS WHAT IS KNOWN…
Based on the Reuters report, here are the key details about Blackstone's investment in an AI data center in England:
Investment amount: 10 billion pounds ($13.32 billion) (I.E. NOT A PACKAGE OF CRISPS) BLACKSTONE HAS 1T AUM SO PLENTY OF “RUNWAY” AND 13B IS A SUBSTANTIAL INVESTMENT “FEELER”
Location: North East of England
Purpose: To build an artificial intelligence data centre
Confirmation: The investment was confirmed by Blackstone, a private equity giant
Announcement: The news was released by the British Prime Minister's office on Wednesday, September 25, 2024
Currency conversion: The report notes that $1 = 0.7508 pounds at the time of reporting
Scope: This is described as a "substantial investment" for establishing an AI data center
The Reuters report is brief and doesn't provide extensive details beyond these key points. It appears to be an initial announcement of the investment, likely with more details to follow. The investment is significant both in terms of its monetary value and its potential impact on AI infrastructure in the UK.
“WITH SO MUCH CAPITAL, SO MUCH PROMISE, AND EFFECTIVELY SHUNTED EU MEMBER-STATE DEVELOPMENT, THE SUN MAY NEVER SET ON THE BRITISH AI EMPIRE — AKA GREAT BRIT-AI-N” -AIC
