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USA-UK: When AI becomes a geopolitical issue

16/12/25

On December 16, 2025, the United States officially suspended its bilateral technology cooperation agreement with the United Kingdom, known as the Tech Prosperity Deal. This agreement aimed to strengthen exchanges, cross-investments, and regulatory coordination in three strategic areas: artificial intelligence, quantum computing, and civil nuclear energy.

This decision is not limited to a simple administrative dispute. It reflects structural trade tensions, especially around non-tariff barriers, such as food standards, industrial regulations, and subsidy policies. Technology thus becomes a lever for economic and political pressure.

The Tech Prosperity Deal: an agreement with high strategic value

Initially, the Tech Prosperity Deal was intended to serve as a framework of trust between two historical allies to facilitate collaboration between deep tech companies, harmonize certain rules around AI and quantum, secure value chains in sensitive sectors and accelerate the industrialization of critical technologies.

It was part of a wider logic of global geopolitical competition, where Western blocks seek to maintain their lead against other emerging powers. Its suspension sends a clear signal: even between allies, technological cooperation is no longer a given.

Why did the United States press pause

From the American point of view, several red lines seem to have been crossed.

First, regulatory differences persist. The United States criticises the United Kingdom for certain practices considered protectionist, particularly in the agri-food and industrial sectors, which complicate market access.

Second, there is a lack of strategic alignment. On AI and quantum, Washington is pushing for frameworks that promote rapid innovation and industrial dominance, while London is adopting a more cautious and prescriptive posture.

Thirdly, the decision sends an internal political message. In a context of American reindustrialization, technology is becoming a tool for demonstrating economic firmness.

The suspension is therefore not final, but constitutes a strategic leverage.

A new reality: tech as a geo-economic weapon

This decision confirms a major trend: technology is no longer neutral. Artificial intelligence, quantum, energy and semiconductors are now integrated into sovereignty strategies.

For states, cooperating means accepting dependence. And in a fragmented world, this dependence is increasingly negotiated, conditioned and sometimes questioned.

The United States/United Kingdom case shows that if two historical allies struggle to align themselves sustainably, the stability of international technological alliances is called into question.

What this is really changing for businesses and startups

For entrepreneurs, this news has direct consequences.

Regulatory uncertainty is increasing and transatlantic AI or deep tech projects may be slowed down or reconfigured.

The risk on R&D partnerships is increasing, as academic and industrial collaborations are becoming more politically sensitive.

Simultaneous access to the American and British markets could require separate legal and product strategies.

Finally, agile startups that are able to adapt their models quickly benefit from a competitive advantage.

Clearly, geopolitics is becoming a business variable in its own right.

a multipolar tech world

The suspension of the Tech Prosperity Deal marks the entry into a more transactional and fragmented phase.

Technological hubs are no longer just geographic, they are becoming political and regulatory. Each territory seeks to maximize its competitive advantage, sometimes at the expense of global fluidity.

For founders and managers, this requires a change in mentality. Product and innovation thinking is no longer enough. You have to think about diplomacy, compliance and technological sovereignty.

Conclusion

The United States put Pause the Tech Prosperity Deal with the United Kingdom in December 2025, a key technological partnership aimed at stimulating cooperation in AI, quantum and nuclear, mainly because of expanded trade disagreements, which highlights the growing importance of economic and regulatory issues in international technology agreements.

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Frequently asked questions

What is the Tech Prosperity Deal?
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Why is technological cooperation fragile?
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What is the immediate impact for deep tech companies?
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What is bilateral cooperation?
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