Procurement description
We want to build government procurement into our offer to support AI startups. By acting as an early customer, government can help to validate novel AI capabilities and de-risk investment for the wider market. We know the difference government contracts can make for startups by providing revenue, credibility, and leveraging private investment. The benefits for applicants could include:
Government contracts to develop prototype AI capabilities, providing revenue and validation.
The opportunity to establish close relationships with government departments and understanding of market demand (such as MOD, DHSC, DSIT, NCSC and others).
We want to design our procurement in a way that supports high-potential AI startups that are developing sovereign AI capabilities. If you are developing something which aligns with our Sovereign AI Focus Areas below, then we want to hear from you. The information gathered will help to design the scheme and ensure it works well for companies.
We are considering a competitive scheme where companies can apply to win government contracts to develop sovereign AI capabilities and address public-interest challenges.
We are considering awarding contracts up to £5 million per project, with a duration of 12 to 24 months, flexible depending on the scope of the project.
To be eligible, projects would have to align with one of the five Sovereign AI focus areas. There will also be further challenges set by government departments to develop specific capabilities which address government priorities in areas such as (but not limited to): advancing scientific discovery, health and social care, national security and defence, cybersecurity, transport, energy & net zero, public service delivery.
The output of the contracts will be a demonstrator stage AI capability which proves proof-of-concept (not a final commercial solution), with a clear route to commercialisation with public or private sector customers.
Companies would retain ownership of all background IP and foreground IP created during the project. Companies are free to exploit the IP commercially or sell it to other customers. HMG would retain usage rights to the foreground IP developed during the project. This is to ensure adherence to procurement law and knowledge retention. Government is not intended to capture any economic value from the IP.
This is a time limited market engagement exercise: please submit your response by 16th May 2026.