LONDON, April 8 (Reuters) - Microsoft ( MSFT ) has has

announced plans for a new artificial intelligence (AI) hub in

London, focused on product development and research.

The unit will be led by Mustafa Suleyman, the London-born

cofounder of Google DeepMind, who Microsoft ( MSFT ) hired last

month.

WHY IT'S IMPORTANT

As the primary backer of ChatGPT-maker OpenAI, Microsoft ( MSFT ) is

a world leader in the rapidly-developing technology.

But competition for AI talent has been heating up across

Europe over the past 18 months. Microsoft ( MSFT ) may seek to poach

experts from other AI-focused companies to staff its new unit,

such as DeepMind or OpenAI.

The move also represents a win for Britain, which has sought

to bolster its credentials as a technology superpower since

hosting the world's first global AI safety summit in November.

CONTEXT

Last month, Microsoft ( MSFT ) hired DeepMind cofounder Suleyman to

run its in-house Microsoft AI division.

Suleyman quit his own recently-formed company, Inflection

AI, to join Microsoft ( MSFT ), taking dozens of staff members with him.

The move received criticism from some corners, as the staff

transfer meant Microsoft ( MSFT ) avoided the regulatory scrutiny that

usually comes with a traditional acquisition.

BY THE NUMBERS

While it remains unclear how many jobs the new centre will

create, the announcement builds on Microsoft's ( MSFT ) recent commitment

to invest 2.5 billion pounds ($3.16 billion) into data centre

infrastructure and improving AI skills across Britain.

KEY QUOTE

"I know - through my close work with thought leaders in the

UK Government, business community and academia - that the

country is committed to advancing AI responsibly and with a

safety-first commitment to drive investment, innovation and

economic growth," Suleyman wrote in a company blog post

published on Monday.

"Our decision to open this hub in the UK reflects this

ambition."

($1 = 0.7918 pounds)