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OpenAI Floated a 2 Billion Pound ChatGPT Deal for the UK

2025-08-24Eleni Courea, Kiran Stacey3 minutes read
Artificial Intelligence
Government Policy
OpenAI

A Multibillion-Pound AI Proposal for the UK

In a significant discussion between the head of OpenAI and the UK's technology secretary, a multibillion-pound deal was proposed to grant the entire UK population premium access to ChatGPT. The Guardian revealed that Sam Altman, a co-founder of OpenAI, discussed a potential agreement with UK technology secretary Peter Kyle to give all UK residents access to the advanced ChatGPT Plus service.

According to sources familiar with the San Francisco meeting, the idea was part of a wider conversation about collaboration opportunities between OpenAI and the UK. However, those close to the discussion indicate that Kyle did not seriously consider the proposal, primarily due to its staggering potential cost of up to £2 billion. OpenAI's premium subscription, ChatGPT Plus, currently costs $20 a month and provides users with faster responses and priority access to new features.

UK's Growing Embrace of Artificial Intelligence

The talks, while not leading to a deal, underscore the technology secretary's strong enthusiasm for the artificial intelligence sector. This enthusiasm persists despite ongoing concerns about the accuracy of chatbot outputs and the significant implications for privacy and copyright.

Secretary of state for science, innovation and technology Peter Kyle.

Official transparency data confirms that Kyle met with Altman in March and April. Following these meetings, Kyle signed a non-binding agreement with OpenAI in July to explore the use of AI in UK public services. This memorandum of understanding could potentially grant OpenAI access to government data for integration into sectors like education, defence, and the justice system.

Kyle has been a vocal proponent of AI, even using it in his own capacity. It was reported in March that he had consulted ChatGPT for advice on work-related topics, telling PoliticsHome that the tool can be a "very good tutor" for complex subjects.

OpenAI's Global Strategy and the UK Market

The United Kingdom stands as one of OpenAI's top five global markets for paid ChatGPT subscriptions. An OpenAI spokesperson stated, "Millions of Brits are already using ChatGPT every day for free... our shared goal is to democratise access to AI." This aligns with the company's broader strategy, which includes recent talks with several governments and a deal with the United Arab Emirates to enable nationwide ChatGPT access in public sectors.

The UK government is actively seeking AI investment from the US, having already struck deals with OpenAI's competitors, Google and Anthropic. Kyle has expressed his ambition for the UK to be at the forefront of AI, viewing technological power as a key factor in future global influence.

Despite the push for adoption, generative AI tools like ChatGPT face criticism. The technology, which learns from vast datasets of existing content, has raised concerns over copyright infringement and has been known for providing false or harmful information.

UK ministers have faced significant backlash from prominent artists over proposed changes to copyright law that would permit AI companies to train their models on copyrighted works without explicit permission. This has led to accusations from creative communities that the government has grown too close to big tech firms. The UK's AI trade body has also argued that the government's focus is too narrow, favoring large tech corporations over smaller domestic players.

In response, a government spokesperson stated, "We don’t recognise these claims," and affirmed that they are working with leading AI companies to improve public services and test new technology. The science and technology department confirmed that no proposal for nationwide ChatGPT Plus access was taken forward or discussed with other departments.

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