The Rundown: Edition 38 – Northern tech boost, Hosted.ai, and EV declines
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Northern tech to receive £1.7bn investment boost
Chancellor Rachel Reeves has unveiled an investment package aimed at boosting technology and digital sectors across northern cities. The package includes £150m investment from the British Business Bank towards high-potential companies in the northern cluster. UKTN
PwC boss points to the door for AI adverse partners
Paul Griggs, PwC’s US boss, has said that partners who are resistant to adopting AI technologies have no place at the firm. The announcement comes as the big four financial services provider looks to shore up its position and pricing structure against AI-driven disruption. FT
Government backtracks on opt-out AI copyright model
The government has U-turned on an initial opt-out copyright model regulating how AI models are allowed to train on artists’ music. The original policy received major backlash from the likes of Sir Elton John and Dua Lipa. BBC
FCA reviews impact of rules on small business borrowing
The Financial Conduct Authority is reviewing how regulations can constrain the availability of finance for entrepreneurs starting up and running small companies. The move follows the FCA noting that UK SME external finance demand is lower compared to other countries. Times
Creandum leads $19m Hosted.ai Seed round
Hosted.ai, a software platform that dramatically increases the efficiency of GPU infrastructure, has raised a $19 million Seed round led by Creandum, with additional investment from People Ventures and Repeat VC. TFN
France’s Parallel raises $20m Series A
Parallel, which is developing AI agents that can carry out administrative tasks in hospitals, has announced a $20 million Series A round led by Index Ventures, with participation from Y Combinator (YC), Frst VC and Hexa. Sifted
Edra secures $30m Series A with Sequoia backing
Edra, a New York-based agentic AI startup founded by former Palantir engineers has raised a $30 million funding round led by Sequoia, with additional investment from 8VC and A*z. Tech.EU
Cyber firm Tracebit lands £15m for US expansion
Tracebit, a cyber startup that helps cloud businesses detect threats, has secured a £15m Series A round led by FirstMark, with participation from Accel, MMC Ventures, Tapestry VC and CCL. UKTN
Government bets big on AI and quantum
Chancellor Rachel Reeves delivered the Mais Lecture, where she pledged “the fastest AI adoption in the G7”, partly thanks to major Government investment in AI and quantum computing to drive productivity, jobs, and prevent tech firms from relocating abroad. BBC
UK Tech Week celebrates “trailblazing businesses”
Today marks the end of UK Tech Week, with events across the country showcasing what the nation has to offer: some of the world’s “most exciting tech talent and trailblazing businesses”, according to AI Minister Kanishka Narayan. UKTN
EU alignment vs. AI ambition
The UK faces a trade-off between aligning with EU rules or diverging to boost its AI ambitions, according to Anand Menon, Director at Public First and Director of UK in a Changing Europe. Faster, clearer policy on data access is crucial to unlock AI-driven growth, potentially worth hundreds of billions to the UK economy. City AM
Calling all West Midlands businesses
The Rigby Foundation has partnered with the University of Birmingham’s City-REDI on a major research project exploring current and future skills requirements and the impact of technological change. They’re looking for employers in Birmingham and the West Midlands to participate in the ‘Future Employment Trends Survey‘. LinkedIn
Sifted 100: UK and Ireland revealed
The 100 listed companies have raised a combined £18.4 billion and generated £2.6 billion in revenue over the last three years. Among these fast-growth startups and scaleups are Checkboard, Yonder, Nory, Carmoola, Flo Health, and Definely. Sifted
Resilience names top 100 defence tech startups
With thousands of defence and resilience startups collectively raising many billions of dollars and euros every year, Resilience Media has created a list of 100 startups to watch in defence tech. Resilience
How high is your phone screentime? Are there any apps you use way more than others? Perhaps you’re using apps like AppBlock or Brick to limit your time on certain apps (ironic, we know). Well, Carl Pei, CEO and Co-founder of Nothing, believes we’ll soon do away with apps altogether. He envisions an AI-first device powered by AI agents rather than apps. Whether that means the agents can still “speak” to each other on platforms such as MoltBook – which was recently acquired by Meta – only time will tell. There remains significant uncertainty around the long-term safety of AI agents and chatbots, with mounting concern that the tech often validates delusions and reinforces psychological vulnerabilities. In one instance, a grieving father is suing Google Gemini for pulling his son, Jonathan Gavalas, into a fantasy world where he believed he and the chatbot were in love. It ended in tragedy and it won’t be the last time it happens.
More uncertainty around electric vehicles. Rolls-Royce has scrapped its 2030 all-electric target, citing the lack of customer demand and the relaxation of regulatory and legislative targets by governments. Late last year, the EU watered down plans to end the sale of new petrol and diesel cars by 2035. Still, who needs an electric car when we can get on Lime’s new “women-friendly” bikes? That’s certainly one way to conserve petrol as gas prices surge. Another way is for governments to declare certain days off, urge people to swap suits for short-sleeved tees to reduce reliance on air conditioning, or mandate that people work from home at least one day a week – which is what Sri Lanka, Thailand, and the Philippines have done, respectively.