OpenAI has reportedly announced its plans to open its first permanent office in London, UK. This new site is expected to offer capacity for over 500 employees. The announcement comes days after the ChatGPT-maker paused its Stargate AI infrastructure project in the UK.
The company said it has signed a lease for an 88,500-square-foot space in the King’s Cross area and plans to expand its current London workforce of around 200 people. In a statement to CNBC, Phoebe Thacker, London site lead at OpenAI, said, “The UK has an incredible depth of talent and a strong track record in AI. London is already a key hub for our research and teams, and this new office gives us the space to keep building here.”The move follows OpenAI’s earlier decision to position London as its largest research hub outside the US, even as it cited high energy costs and regulatory challenges for halting the Stargate project. Industrial energy prices in the UK remain among the highest globally, and delays in connecting to the national grid are also flagged as hurdles to AI infrastructure development.The new office will place OpenAI alongside other major AI companies in King’s Cross, including Google DeepMind, Meta, Synthesia and Wayve. Meanwhile, discussions with the Stargate project partner, Nscale, are ongoing, though the pause has been viewed as a setback for the UK’s AI expansion plans.
What are UK’s plans to turn the country into an AI hub
The UK has been working to establish itself as a global AI hub, but it remains behind other ecosystems, such as the US and China, in terms of technological progress and funding. The UK government introduced its AI Opportunities Action Plan at the start of 2025, while AI startups have continued to secure significant investments from venture capital firms.Funding has reached $6.7 billion so far this year, according to Dealroom, nearing the $8.2 billion recorded for the whole of 2025.
Among recent deals, AI cloud company Nscale raised $2 billion in March, autonomous driving startup Wayve secured $1.2 billion in February, and AI voice startup ElevenLabs has raised $500 million.Following tensions between the Pentagon and OpenAI rival Anthropic, UK officials also stepped up efforts to attract the company, including proposals to expand its London office presence and pursue a dual listing, the Financial Times recently reported.
