Energy – The Information Badger

As widely reported (see here for example), OpenAI is pausing its multi-billion-dollar Stargate UK project. The project was first announced in September 2025 with the declared purpose of ensuring ‘OpenAI’s world leading AI models can run on local computing power in the UK, for UK – particularly for specialist use cases where jurisdiction matters. This will help power the UK’s future economy, boost its global competitiveness, and deliver on the countries national AI Opportunities Action Plan’. The UK government’s AI Opportunities Action Plan had been announced in January 2025 as a focus for ramping up AI adoption to boost economic growth, jobs, and improvements to people’s everyday lives. A year later, in January 2026, a seemingly positive progress update was published. The government’s thus likely to be wringing its hands about OpenAI’s pause. Why? Because it puts a dent in the country’s desire to be an ‘AI superpower’, especially when the company asserts that regulation and high energy costs are obstacles. The Stargate UK pause, however, is hardly a surprise given that the holistic situation faced by OpenAI today is really no different to when the project was announced last September.

OpenAI announced the project on the date President Trump started his state visit to the UK. With tariffs as a backdrop, the pressure on the UK government to make the visit a success was huge, and a centrepiece during the visit was the signing of a technology partnership involving new investment and cooperation on AI. Domestically, the government needed this to promote its growth agenda, but a ‘technology partnership’ and tangible realities are different. Given the pressure for the visit to be a success, OpenAI’s Stargate UK announcement was part of an overall joint PR strategy – at least that’s what the Badger senses. At that time, the UK had some of the highest costs for electricity in the world, and that’s still the same today! If there’s one thing an aspirant AI superpower needs, it’s economically competitive electricity and so it can hardly be a surprise when a commercial company focused ‘on the business case and numbers’ decides to hold off further investment. Additionally, there’s uncertainty about changes to UK law to allow AI firms to train their systems using copyrighted works, ongoing investor anxiety about an AI bubble, the fact that OpenAI hasn’t delivered a profit yet and is forecast to make losses of ~$44 billion before becoming profitable in 2029, and that OpenAI is facing massive competition from Google (and others) which is raising significant questions about its future. All of these points were material when Stargate UK was announced 7 months ago, and they remain so today.

A sceptic could thus be excused for thinking that the project was driven by a geopolitical public relations necessity in the first place. For the Badger, with his instincts rattling from experience, it’s thus hardly a surprise that Stargate UK is paused…

When the radio alarm signals that it’s time to rise and prepare for the day ahead, it’s easy to doze for a few extra minutes without listening to the programme being broadcast from the radio. Sometimes, of course, there’s something in the babble which grabs your attention, sharpens alertness, and forces you to concentrate on whatever’s being said. That’s exactly what happened with the Badger earlier this week, The babble included an item of interest because it related to the Badger’s post-doctoral research many decades ago. That item was about the scientific and engineering drive to harness the power of nuclear fusion for the generation of limitless, sustainable, carbon-free electricity.

The item covered the UK government’s written statement on the UK’s Fusion Strategy, it’s investment in STEP – building a prototype fusion plant in Nottinghamshire by 2040 – and its investment in the world’s most powerful fusion-dedicated AI supercomputer to accelerate fusion design, modelling, and operations. It asserted that this is the most ambitious push yet to establish the UK’s complete energy independence from foreign price shocks. Investing £45m in this supercomputer, part of a wider government effort in AI and supercomputing infrastructure that has already seen a separate £36m supercomputer investment at the University of Cambridge, is a step along the road. However, let’s face it, it’s a tiny step when the country spends >£60bn on Defence, >£300bn on Welfare, and >£90bn on Education.

Harnessing nuclear fusion is the holy grail of getting clean, limitless energy. It’s been that way for as long as the Badger can remember and so has its reputation for always being ’50 years away’. The scientific and engineering challenges to be overcome in order to build and operate a commercially viable nuclear fusion reactor are enormous. However, there’s been huge advances over the last 30 years or so, a timeline that in parallel has also seen huge advances in computers and information processing. The latter has already helped enormously in getting fusion to its current position and there’s little doubt that further computing advances, particularly in AI and machine learning, will continue to accelerate progress towards achieving the holy fusion grail of large scale, carbon-free, sustainable energy on this planet.

But with the first experimental reactors currently forecast to start operating around 2040 and beyond, usable power from fusion still seems ’50 years away’ in practice. Generation Alpha and their children are thus likely to be the first generations to use power from viable fusion reactors. So, here’s a thought. Enormous amounts of money are being spent on AI across the globe. In comparison, a pittance is being spent on getting to power-generating fusion reactors that will hugely benefit our planet. Unless there’s a 1960’s-like ‘let’s go to the moon’ moment for fusion, the Badger can’t help but feel that it will always be ’50 years away’ regardless of investments in dedicated AI supercomputers…

Category: Energy

OpenAI pausing Stargate UK is hardly a surprise!

AI and progress towards nuclear fusion for power generation…