Bristol is strengthening its position as an international artificial intelligence hub following an investment from a second major chip firm this week. London-based start-up Olix has confirmed plans to expand its presence in the city after raising £160 million in a new funding round.
The announcement follows a £100 million investment by fellow chip firm Fractile in its own operations, including a new engineering facility in Bristol. These developments support the reputation of the region as a central location for the industry, anchored by the University of Bristol supercomputer, which opened last year.
Olix, founded by 25-year-old James Dacombe, is now valued at £734 million. The business was established in 2024 and aims to develop technology intended to be faster and cheaper than that of market-maker Nvidia. The company is currently recruiting for roles in Bristol, with salaries for a senior digital design engineer ranging between £125,000 and £180,000. Successful applicants are offered a £24,000 annual supplement for living near the office.
This expansion follows news from Fractile regarding its own growth. The firm, which is headquartered in Newbury, will build a hardware engineering facility in Bristol to develop systems for running AI models. It will also include a lab for testing software designed for future computing technology.
Kanishka Narayan, the AI minister, said: “I am setting Britain’s AI leaders a challenge – bang the drum for start-ups, spread the opportunities to every corner of our country, and embrace risk. By investing in British tech innovation, just as Fractile is doing today, we can reinforce our leadership in AI and boost our influence on the global stage.”
Commercial investments in the area are supported by the University of Bristol, which houses Isambard-AI. This facility, which launched in November 2025, is a fast university-based supercomputer. Powered by 5,448 Nvidia superchips, the site supports work in climate science and drug discovery.
Lloyds Bank recently described Bristol as a primary location for the industry due to its hub of digital innovation. The digital and technology sector in the West has experienced 52 per cent job growth over the last decade, contributing £3.8 billion annually to the regional economy. Regional strategies aim to establish an AI Supercluster centred on Isambard-AI to support the creation of 72,000 new jobs. Nvidia has also pledged to invest up to £11 billion into the UK ecosystem.
Image source: Gov.uk
