“The investment from Fractile, a London-based computer chipmaker, will fund a larger UK-based engineering team and support work on next-generation systems designed to run advanced AI models faster than current hardware,” the British government said.

The new site, in the western English city of Bristol, will assemble Fractile’s chips into full AI systems and host a testing lab for software built for future computer technologies.

Britain said Fractile’s decision to scale in the country reflects confidence in its tech sector, which the government says is now valued at more than £1 trillion.

AI minister Kanishka Narayan, who is expected to announce the investment at an event in London, said Fractile’s plans showed how British companies could strengthen the country’s position in advanced computing.