Why OpenAI is Embarking on a Major UK Expansion
OpenAI made headlines in recent days after confirming it had paused its Stargate UK infrastructure project.
However, in a move that seemingly demonstrates growing demand for its products in the region, the rapidly-growing startup has signed the lease on a new London office, establishing its first permanent base in the city and representing a major step in the company's UK expansion.
It also supports ambitions to grow teams working in research, engineering and commercial roles.
OpenAI has taken an 88,500 square foot space at Regent Quarter in King's Cross, covering both Jahn Court and the Brassworks Building. The office space, which has been developed by Endurance Land, will accommodate up to 544 team members when it opens in 2027.
"The UK has an incredible depth of talent and a strong track record in AI," says Phoebe Thacker, Global Head of Data Research Programmes and London site lead at OpenAI. "London is already a key hub for our research and teams, and this new office gives us the space to keep building here.
“We’re seeing real momentum in how businesses, developers and institutions across the UK are using AI, and we want to support that growth. This investment reflects our long-term commitment to the UK and the role it can play in shaping how AI is developed safely and used to benefit people all over the world.”
London’s role in research and adoption
OpenAI’s UK expansion follows a recent decision to make London its largest research hub outside the US.
The firm currently has around 200 employees in London working across research, engineering, customer support, integrity enterprise, startups, policy, communications, marketing and sales. It anticipates continued growth across these functions over the coming years.
London already serves as a key centre for OpenAI’s global research operations, with teams making contributions to critical elements of the company's work, including Codex and its latest models. As expansion continues, London-based teams are expected to maintain an important role across research and product development, integrity and providing support to businesses, developers and institutions using AI across the UK.
According to OpenAI, the UK represents one of the world’s leading AI markets, with thousands of AI companies and tens of thousands of people working in the sector. The company’s investment looks set to support this ecosystem and contributes to further innovation, productivity and economic growth.
OpenAI’s technology is already in use by a host of leading UK organisations, ranging from established businesses like NatWest to startups like Veed, alongside academic institutions including the University of Oxford.
Why was Stargate UK halted?
Days before confirming the new London base, OpenAI announced it had paused its multi-billion-dollar date centre project in North Tyneside, citing high energy costs and ongoing regulatory uncertainty.
Stargate UK had been viewed as a cornerstone of national tech strategy. Unveiled in 2025 alongside hardware partners Nscale and NVIDIA, the programme aimed to substantially strengthen the UK’s sovereign computing capacity.
Early plans outlined the installation of as many as 8,000 GPUs in the first quarter of 2026. Over time, that infrastructure was expected to scale up to around 31,000 GPUs, enabling advanced workloads in regulated sectors such as finance, national security, and other specialist industries.
“We see huge potential for the UK’s AI future,” said an OpenAI spokesperson after news of the Stargate UK suspension went public. “London is home to our largest international research hub and we support the government's ambition to be an AI leader.”
Commitment to UK priorities
As part of its commitment to the UK, OpenAI is continuing to pursue priorities outlined in its 2024 memorandum of understanding with the UK Government.
Since signing, it has introduced data residency for UK customers, signed agreements with the Ministry of Justice and is supporting UK SMEs to build AI skills through its SME Accelerator programme.
“The expansion of OpenAI’s operations in London will have real benefits for the UK,” comments Antony Walker, Deputy CEO at techUK.
“This investment will further deepen the UK’s pool of AI knowledge, talent and research and help to keep the UK at the forefront of the development and deployment of AI globally.”
Oliver Jackson, Director at Endurance Land, the property investment and development company behind Regent Quarter, said the landmark letting represented a “pivotal moment” for the site as a “destination for pioneering organisations shaping the future of their industries”.
He added: “As we continue to evolve the estate, our ambition at Endurance Land is to create a campus for knowledge-led occupiers that attracts and supports leading global innovators, fostering a dynamic ecosystem defined by collaboration, innovation and long-term growth.”
