Funding for UK artificial intelligence companies surged to $9.6 billion (£7.1 billion) during the first half of 2026, marking a substantial increase compared with the same period last year, according to new research from Tracxn Technologies.
The UK AI – H1 2026 Report found that investment in British AI companies increased by 360% compared with the first half of 2025 and was 284% higher than the funding recorded in the second half of last year.
The sharp rise in investment came despite a lower number of funding rounds. Tracxn recorded 69 deals during the first six months of 2026, compared with 74 in the first half of 2025. The number of deals was unchanged from the second half of 2025.
Investment was also heavily concentrated among a small number of companies. The five most-funded UK AI businesses accounted for 84% of total funding during the period. Isomorphic Labs, Nscale and Wayve were among the leading recipients, collectively raising $5.3 billion.
The research also highlighted London’s growing dominance of the UK’s artificial intelligence investment market. Companies based in the capital attracted 98% of total UK AI funding during the first half of 2026, up from 93% in the second half of 2025.
Oxford ranked a distant second, with AI companies in the city raising $103 million during the period. Cambridge followed with $18.3 million, while companies in Edinburgh and Milton Keynes raised $16.1 million and $12 million respectively.
The figures underline the rapid expansion of the UK’s AI investment market while also highlighting the concentration of funding in a small group of major companies and London’s technology ecosystem.
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