OpenAI has hit pause on its ambitious multi-billion pound project in north-east England amid worries that the country's power prices are too pricey and the regulatory environment isn’t as permissive as it could be.

The company, known for making ChatGPT, had big plans including a vast data centre and partnerships with tech giants Nvidia and Nscale to bolster its AI infrastructure. But now, an OpenAI spokesperson says they’ll only move forward when conditions are right – like when energy costs and regulation make long-term investment feasible.

London remains the company’s largest international research hub, and it supports the UK's goal of becoming an 'AI superpower.' However, it seems that until the right conditions are met, OpenAI will hold off on making significant investments in the UK for now.

The UK government is no doubt disappointed. Earlier this year, tech secretary Liz Kendall praised the country’s burgeoning AI sector, boasting about a 23-fold growth rate compared to the wider economy and over £100 billion of private investment since her party came into office. But with OpenAI holding back, it leaves a big gap in the plans for UK tech dominance.

Meanwhile, other big tech players are also navigating similar challenges. Just this week, OpenAI floated ideas like a four-day workweek to cope with more powerful AI systems – but that's another story entirely.