ServiceNow Invests $1.5 Billion in UK for AI Localization and Workforce Expansion

ServiceNow to invest $1.5 billion in the UK to localize AI data processing

Bill McDermott, Chairman, President & CEO ServiceNow, speaking on CNBC's Squawk Box at the World Economic Forum Annual Meeting in Davos, Switzerland on Jan. 17th, 2024. American enterprise software giant ServiceNow announced Monday it plans to invest $1.5 billion in the U.K. over the next five years, in a vote of confidence for Prime Minister Keir Starmer as he looks to attract foreign investment to the country. The tech firm said the mammoth sum of cash will go toward growing its U.K. business, as it plans to expand with new office space and grow its employee base beyond the 1,000 people it hires in Britain currently. Beyond local business expansion, ServiceNow also said it would invest the cash into localizing the processing of data for its large language models (LLMs), AI models that rely on vast quantities of training data to be able to understand and generate text like a human. The firm said that it would bring Nvidia GPUs (graphics processing units) to its data centers based in London and the Welsh city of Newport to support processing of data on its LLMs within the U.K. This will help support "domain specific LLMs" for U.K. clients and governments, ServiceNow said. Policymakers and regulators in Europe have increasingly been calling for so-called AI "sovereignty." This refers to the idea that the technologies and data underpinning advanced AI systems should be stored within Europe, and more accurately reflect the culture and history of Europeans. ServiceNow said it also planned to offer new skills programs in the U.K. that will reach 240,000 learners. "The United Kingdom is embracing technology transformation at scale. In this new age of AI, the country continues to be a global leader in driving innovation for the benefit of all its communities," Bill McDermott, ServiceNow's CEO, said in a statement Monday. "Our investment accelerates the U.K.'s push to put AI to work, empowering people, enriching experiences, and strengthening societal bonds. Together, ServiceNow and our customers across the U.K. are delivering a future where technology benefits everyone." The announcement was made as part of the International Investment Summit, where U.K. leader Keir Starmer is set to gather 300 business leaders to encourage foreign investment. ServiceNow, which has a market capitalization of $194.6 billion, has seen its shares climb over 37% this year, thanks in no small part to the hype surrounding AI. ServiceNow's cloud-based technology is intended to help other businesses manage digital workflows. But the company hasn't been shy in touting its own AI prowess. Last month, ServiceNow launched Xanadu, a platform that uses a range of AI technologies including so-called "agents" to boost worker productivity. AI agents are digital assistants that are designed to help employees get tasks done with limited supervision. In the second quarter of 2024, the company reported earnings per share of $3.13, excluding items, on $2.63 billion in revenue, beating analyst expectations. ServiceNow isn't the only tech giant betting big on the U.K. as a global destination for AI innovation. Earlier this year, Salesforce opened its first global AI center in London, a space it's using to facilitate AI training and upskilling programs as well as promote industry collaboration. The AI center forms part of a $4 billion investment Salesforce committed to making in the U.K. over five years in June last year.

ServiceNow and CoreWeave to invest $8.2 billion in UK data centers By Invezz

Invezz.com - The UK is rapidly emerging as a global hub for artificial intelligence (AI) and cloud infrastructure, with major tech companies announcing multi-billion-pound investments in the region. US firms such as ServiceNow and CoreWeave have committed significant resources to expand their operations in the UK. The total investment announced recently amounts to an impressive £6.3 billion, CNBC reported. Enterprise software giant ServiceNow is set to invest $1.5 billion in its UK business over the next five years. The US-based company plans to grow its local presence by expanding office space, hiring additional staff, and localizing data processing for its large language models (LLMs). With the help of Nvidia (NASDAQ:NVDA) graphics processing units (GPUs), ServiceNow will enhance its data centers in London and Newport to better support LLMs within the UK. This development aims to meet the increasing demand for domain-specific AI models among British clients and government entities. CEO Bill McDermott emphasized the significance of this move, stating that the UK is at the forefront of technological transformation and innovation, particularly in AI. CoreWeave, a US-based cloud computing firm that rents out GPUs to developers for training large AI models, has announced its second major investment in the UK. The company will contribute £750 million ($978.6 million) to address the growing demand for AI infrastructure in the country. This follows an earlier commitment of £1 billion made in May, further cementing CoreWeave's role in supporting the UK's expanding AI landscape. The announcement reflects the company's strategic focus on establishing the UK as a key location for its global AI operations. In addition to AI-focused investments, US data center operators CyrusOne and CloudHQ are also backing the UK with substantial financial commitments. CyrusOne plans to invest £2.5 billion to expand its operations across the UK, while CloudHQ will develop a new £1.9 billion data center campus in Didcot, Oxfordshire. These projects underscore the increasing demand for robust cloud infrastructure to support the growing AI sector, reinforcing the UK's position as a critical market for technology development. The UK government has welcomed these large-scale investments as a vote of confidence in the country's economic strategy and commitment to AI innovation. Technology Minister Peter Kyle noted that these investments would deliver sustained growth for all and further solidify Britain's leadership in AI and technology development. These announcements were made at the International Investment Summit, where 300 business leaders gathered to discuss foreign investment opportunities under the leadership of Prime Minister Keir Starmer. These developments underline the UK's growing role in the global AI landscape, as tech firms continue to recognize the country's potential for driving innovation and transformation. ServiceNow's decision to localize data processing for its AI models reflects a broader trend toward AI sovereignty in Europe. Policymakers in the region have increasingly called for technologies and data related to AI to be stored locally, aiming to ensure they align with European values and legal frameworks. By processing AI data within the UK, ServiceNow is helping to meet these sovereignty goals while addressing the specific needs of UK-based clients and government bodies. In addition to its financial commitments, ServiceNow plans to implement new skills programs that will reach 240,000 people across the UK. These initiatives will focus on training the next generation of tech professionals, particularly in AI-related fields, to ensure the country remains competitive in a rapidly evolving global market. This investment in upskilling highlights the broader impact of foreign investment on the UK's tech workforce and its potential to drive future economic growth through AI innovation.

ServiceNow Commits $1.5B To UK AI And Workforce Growth - ServiceNow (NYSE:NOW)

UK data centers to integrate Nvidia GPUs for AI and launch reskilling programs for 240,000 learners. ServiceNow, Inc. NOW shares are trading higher on Monday. The company plans to invest $1.5 billion in the U.K. over the next five years. The company plans to expand office space and increase its workforce beyond 1,000 employees. The investment will also enhance its London and Newport data centers with Nvidia GPUs for local LLM data processing and introduce skills programs for 240,000 U.K. learners. ServiceNow is reaffirming its commitment to the U.K. by investing in expanded office space, significant workforce growth, and AI skills programs. The company aims to leverage AI through domain-specific LLMs in U.K. data centers and to provide reskilling opportunities for British workers. ServiceNow Chairman and CEO Bill McDermott said, "The United Kingdom is embracing technology transformation at scale. In this new age of AI, the country continues to be a global leader in driving innovation for the benefit of all its communities." "Our investment accelerates the UK's push to put AI to work, empowering people, enriching experiences, and strengthening societal bonds. Together, ServiceNow and our customers across the UK are delivering a future where technology benefits everyone." Investors can gain exposure to the stock via iShares Expanded Tech-Software Sector ETF IGV and Franklin Exponential Data ETF XDAT. Price Action: NOW shares are up 0.71% at $945.25 at the last check on Monday. Image via Shutterstock Read Next: Nasdaq, S&P 500 Futures Rise Solidly Ahead Of Q3 Earnings Season, Boeing Drags Dow: This Strategist Sees 'A Lot Of Firepower' Supporting Market After Election Market News and Data brought to you by Benzinga APIs