Mohiussunnath Chowdhury, 27, stated that he intended to commit "suicide by cop" because of British government policies against Muslims.
After spending over 11 hours of discussing the case, the jurors were unanimous in acquitting him of terror charges.
Two officers received cuts to their hands and needed hospital treatment after a fight with the man with the sword, according to media reports.
In his defence, Chowdhury noted he had been feeling lonely and depressed, and that he had told his sister he wanted to die, according to The Guardian.
A spokesman for the Britain's Crown Prosecution Service said that Chowdhury had been charged with "the most appropriate offence" and would face no further prosecution over the incident.
The court heard how Mohiussunnath Chowdhury had started working for Uber after dropping out of a university psychology degree and had only become a practising Muslim one month prior to the incident.