Key Points:
- OpenAI is opening its first permanent London office, capable of holding over 500 staff.
- This move follows the company’s decision to pause its major UK Stargate AI infrastructure project.
- The new office is in London’s King’s Cross, a hub for AI companies.
- OpenAI cites high energy costs and regulatory environment as reasons for the Stargate project halt.
OpenAI has announced it’s opening its first permanent office in London, capable of housing over 500 team members. This news comes after the company recently paused a major AI infrastructure project in the UK. The U.S.-based AI firm confirmed on Monday that it signed the lease for an 88,500 square foot space. In February, OpenAI stated it would make London its largest research hub outside of the U.S. The company currently has around 200 employees in the UK capital.
“The UK has amazing talent and a strong history in AI,” said Phoebe Thacker, London site lead at OpenAI, in a statement. “London is already a key hub for our research and teams, and this new office gives us the space to keep building here.” OpenAI’s new office will be in London’s King’s Cross area, a location already home to many AI companies, including Google DeepMind, Meta, Synthesia, and Wayve.
This announcement comes just days after OpenAI confirmed it had put its plans for the UK Stargate project on hold. The company cited high energy costs and the country’s regulatory environment as reasons. Discussions between OpenAI and its project partner, Nscale, are still happening, according to a source directly familiar with the matter. However, the decision to halt plans was seen as a setback for the UK’s AI development efforts.
Industrial energy prices in the UK are among the highest globally. Critics of the UK’s AI infrastructure buildout previously told that the high cost of energy and delays in connecting to the national grid were major obstacles. The UK has been trying to position itself as a leading AI hub worldwide, but it still lags far behind top ecosystems like the U.S. and China in both technological innovation and funding.
It launched its AI Opportunities Action Plan at the start of 2025, and AI startups have increasingly been raising large sums from venture capitalists.
