The Labour government has shelved a proposed £800 million supercomputer project at Edinburgh University as part of a broader £1.3 billion cut in funding for technology and AI initiatives, including a £500 million AI Research Resource. The decision, announced by Secretary of State Peter Kyle, follows warnings from Chancellor Rachel Reeves about the challenging economic conditions left by the previous Conservative administration. Edinburgh University had already invested over £31 million in preparations for the supercomputer, which was expected to be 50 times more powerful than existing UK computers and critical for advances in medicine and other fields. The Department for Science, Innovation and Technology (DSIT) stated that the funding was never allocated in the prior government's budget, leading to the cancellation. Critics, including Conservative shadow minister Andrew Griffith, have accused Labour of having lower ambitions for the UK tech sector. The university expressed disappointment but has not made an official comment regarding the cancellation.