Google DeepMind, OpenAI, Anthropic — three of the most important competitors shaping the present and future of AI. What do they have in common? They are all building international presence and making London, particularly King’s Cross, their home.
And it is not just them. Wayve, Scale AI, BenevolentAI, and others have made — or are rumoured to be making — King’s Cross their base.
This is a net positive for London, and the UK more broadly.
From mid-2025 to early 2026, the Financial Times has published a series of articles on the UK office real estate market: a shortage of space in the City of London, falling vacancy rates, and large corporations scrambling to secure sizeable offices wherever they are available. New developments slowed after Covid due to the uncertainty introduced by remote and hybrid work. A clear demand trend needed to re-establish itself before development could resume at scale.
Even before AI companies started taking up space, demand was already outpacing supply in prime locations — a necessary condition for new development. What we are now seeing is an acceleration of that trend. If real estate investors expect sustained demand from this level of business activity, particularly from well-capitalised AI firms, the rational response would be to increase investment in new supply.
The more curious point is the continued appeal of London to this new generation of technology companies.
The answer is not surprising: talent.
As The Times wrote, reporting on a role at Anthropic offering up to £650k: “This role is for someone who can build and train the brains of generative AI… There are not many people who can do this.” And if you are looking to find that talent outside the US, London is, without doubt, one of the next best options.
Not only because it has elite universities and a deep talent pool, but because it is one of the few cities that consistently attracts elite talent from across the world. Even if the talent is not currently in the UK, London remains a place they are willing to move to.
In January, I wrote about early signals of London strengthening its position as the startup capital of the world, excluding the US. This new wave of King’s Cross companies gives further evidence. Beyond the well-known names taking large office spaces and paying exceptional compensation, startups are also not slowing down.
Data from Dealroom highlights the scale:
- UK startups have raised over $7.8bn in venture capital in Q1 2026
- Q1 2026 marks the highest Q1 since 2022, up $2.9bn year-on-year (60%)
- Artificial intelligence now accounts for 74% of UK venture capital
- UK AI startups have raised $5.8bn in Q1 2026, up $3.7bn year-on-year (176%)
So we are seeing a clear trend developing.
I particularly appreciate the government’s Sovereign AI initiative. It is one of the clearest signals that it has aligned itself with this new generation of companies and is willing to support them where possible. Its mission is clearly stated: “Artificial Intelligence will be the most important technology of our lifetimes. Our mission is to support the UK’s best founders to build a new generation of globally leading AI companies.”
Even the slogan is sharp: “The speed of venture. The strength of a nation.”
The UK has a unique opportunity here, and it is worth noting how quickly it is being recognised — and acted on.
Footnote
- Recent data suggests office demand has re-established itself, particularly for prime space. Colliers reports London vacancy rates at ~7–8%, with prime space as low as ~1–3% in key submarkets, and over 70% of new developments pre-let prior to completion. Demand from AI-related occupiers is also accelerating, with take-up from the sector up ~136% year-on-year. Meanwhile, CBRE estimates only ~1.3 years of development supply currently under construction, reflecting a still-constrained pipeline. Taken together — falling vacancy, high pre-letting, constrained supply, and rapidly growing AI demand — these point to a clear and durable demand signal in the market.
- The Times and The Sunday Times – Jaw-dropping salaries put top AI talent out of reach for UK unicorns
- FT – City of London risks running out of top office space