While the £2 billion ChatGPT subscription idea has drawn attention, it’s the “non-binding” nature of the UK’s existing deal with OpenAI that warrants closer scrutiny. This Memorandum of Understanding, signed in July, creates a framework for collaboration without firm commitments, a feature that offers both flexibility and risk.
This existing pact, which followed talks between Peter Kyle and Sam Altman, allows OpenAI to explore AI applications in UK public services. The non-binding status means the government can easily walk away from any specific project, providing an exit strategy if security or ethical issues arise.
However, a non-binding agreement can also lead to “soft lock-in,” where increasing collaboration and integration make it difficult to switch providers or back out, even without a formal contract. It allows a company to become a trusted, embedded partner, influencing policy and technical standards from the inside.
Therefore, the scrapped £2 billion deal can be seen as the high-water mark of ambition, while the non-binding MoU is the subtle, but potentially more impactful, reality. It represents a low-cost entry point for deep collaboration that could eventually lead to more significant, binding commitments in the future.