UK-US Tech Prosperity Deal Talks Remain Live Amid Reported Stalls

Downing Street on Thursday reiterated that the United Kingdom remains in active conversations with U.S. counterparts at all levels of government regarding a wide-ranging Technology Prosperity Deal, even as media reports suggested talks have stalled.

The BBC reported that discussions over the Tech Prosperity Deal have slowed because U.S. officials have concerns about what they see as wider UK trade barriers. The partnership, unveiled during President Donald Trump’s state visit in September, was billed as a generational leap in the two countries’ cooperation on artificial intelligence, quantum computing and other advanced technologies. A Prime Minister's official spokesman said negotiations of this kind are never straightforward, and he declined to outline the exact status of live talks beyond confirming they remain active.

The New York Times had suggested broader disagreements between London and Washington, including on digital regulations and food safety rules. The UK government did not comment on those specific claims, and the White House did not respond to requests for comment. Nevertheless, Michael Kratsios, Trump’s science adviser, signaled that the administration hoped to restart talks once the UK had made substantial progress implementing its commitments under the Economic Prosperity Deal. In a post on X, Kratsios wrote that the U.S. hoped to resume work with the United Kingdom “once the UK has made substantial progress in implementing its commitments under the Economic Prosperity Deal,” and that collaboration across AI, quantum, nuclear and other critical technologies would continue under the deal.

When the tech pact was announced, London highlighted the benefits it expected to deliver. The prime minister at the time, Sir Keir Starmer, called the Tech Prosperity Deal a “generational step change” in the U.K.’s relationship with the United States. Technology secretary Liz Kendall said the partnership would transform lives across Britain and represented a vote of confidence in Britain’s booming AI sector. At the same moment, a flurry of investment pledges was announced by major tech firms, with roughly £31 billion in planned spending laid out by Microsoft, Nvidia and Google. Officials have said those investment plans are believed to be unaffected by the negotiations' status.

Nvidia founder and chief executive Jensen Huang underscored the deal’s significance, saying in September that the company’s UK investment reflected a belief that the country could become an “AI superpower”—an ambition hailed by the government. The investments were framed as fuel to scale up AI infrastructure in Britain, including data centers, and to advance capabilities in AI hardware and related technologies under the broader framework of cooperation in AI, quantum computing and nuclear energy.

The Technology Prosperity Deal was documented in a Memorandum of Understanding that laid out areas for collaboration while stressing that proposals under the MOU are non-binding and would only take effect in tandem with substantive progress toward formalizing and implementing the wider US-UK Economic Prosperity Deal, signed in May. The MOU likewise suggested potential joint work on “powerful quantum machines,” AI hardware innovation, and exploring new uses for advanced nuclear energy. The arrangement was framed as a stepping stone to broader economic and strategic collaboration rather than a stand-alone, immediately binding treaty.

The broader U.S. approach to trade has been to pursue more unilateral or redefined rules, including tariffs on various partners. The Trump administration has sought to rewrite global trade rules and has imposed tariffs on numerous countries, including traditional allies such as the United Kingdom. In parallel, London has been negotiating sector-by-sector concessions as part of a broader, looser alignment with Washington on trade priorities. A proposed agreement to eliminate tariffs on UK steel exports to the United States has been placed on hold indefinitely, according to BBC reporting.

Industry observers have framed the ongoing impasse as reflective of a “slightly piecemeal” approach to trade negotiations. Allie Renison, director of communications firm SEC Newgate UK and a former government trade adviser, noted that a stepwise, sector-by-sector strategy can complicate broader tech deals. “Instead of having everything done at once, different areas are being linked to different parts,” she told the BBC, adding that current concerns about separate trade areas may be affecting tech agreements. Still, Renison cautioned that the standoff appears to be more about posturing within broader negotiations than a fundamental, intractable blockage.

The situation remains fluid. Downing Street has emphasized ongoing dialogue, while acknowledging that the path to a formal, comprehensive agreement will require substantial alignment on multiple fronts, including digital regulation, data flows, and regulatory standards. The U.S. government has signaled openness to restart discussions, contingent on progress in implementing existing commitments under related prosperity initiatives. As the tech sector urged certainty—promising billions in UK investment and pledges to expand AI capacity—the two sides appear to be balancing strategic cooperation with the political and regulatory questions that have long colored post-Brexit tech diplomacy.

Reporting contributed by Michael Race and Philippa Wain. Additional context reflects ongoing developments in the transatlantic technology partnership and the evolving U.S.-UK trade agenda.