Anthropic, OpenAI, Cursor, and Google are expanding office space in London, with moves announced in recent months and this week. Databricks, Salesforce, Rivian, and Palantir are also increasing headcount or growing campuses in the city, with Rivian and Palantir confirming growth in the second half of 2025. The expansions are driven by access to London's deep AI talent pools and the push to develop and commercialize frontier technology. Mike Wiseman, head of campuses at British Land, told CNBC that London has built a mature technology ecosystem over many years, making it one of the few markets globally that can support large-scale international growth. Global AI startups have raised $392.1 billion so far this year, according to Dealroom, surpassing the previous record of $215.9 billion in 2025.
U.S. Tech Companies Cite London Talent Pools as Expansion Driver
Anthropic announced in April it secured office space in London for 800 people, roughly four times its current headcount in the city. OpenAI also took up larger office space in recent months. Cursor unveiled plans this week to open a London headquarters this summer, and Google said it will begin moving teams into a new 11-storey building in Kings Cross in the coming months.
Wiseman told CNBC the growth is being driven by a "new generation" of companies that weren't on the radar a few years ago. Frederic Groussolles, partner at executive search firm Heidrick & Struggles, told CNBC that London has emerged as one of the "deepest" pools of frontier AI talent outside of the U.S. "A decade of investment anchored by DeepMind, major research labs and leading universities has created a mature talent base spanning AI research, engineering and commercial leadership," Groussolles said.
DeepMind was founded in 2010 in London and acquired by Google in 2014, maintaining a large team in the U.K. capital. Google DeepMind has since been behind the tech giant's Gemini models alongside a number of AI breakthroughs. When announcing Anthropic's London expansion, head of EMEA north Pip White specifically flagged the "exceptional pool of AI talent" as a key driver of the move. Anthropic's new office space will be located in the Knowledge Quarter area of London, home to a slew of AI companies including OpenAI, Google DeepMind, Meta, Synthesia and Wayve.
Groussolles added that London is one of the world's principal financial centers, giving companies "ready access to venture, growth equity and corporate development networks." Dan Hyde, executive chair and founder at executive search firm Erevena, said the activity from well-funded U.S. tech companies is putting pressure on local startups and making hiring top talent harder. "These [U.S] companies are in a position to offer attractive packages (cash and equity) and meaningful work. Lots of people want to work for those companies," Hyde said.
Office Space Shortage and Infrastructure Concerns Emerge in London Tech Sector
Wiseman told CNBC that space is a significant constraint for London's tech sector. "The biggest structural challenge in London at the moment is supply," Wiseman said. "There is a well-documented shortage of high-quality office space coming through over the next few years, particularly in core locations, and that is likely to continue until 2030." British Land estimates that across London, there is a 10.4 meter square foot shortfall of new or substantially refurbished space to 2030.
Groussolles said the shortage is being driven by hypergrowth AI companies competing with more traditional finance and professional services firms for the same limited stock of top offices. Ziv Reichert, partner at London-based VC firm LocalGlobe, said there are concerns emerging around whether infrastructure needed to support employees and rapidly increasing compute demands continues to match the pace of growth. "The bigger issue is whether we continue investing in the infrastructure that supports growth, talent, power, housing, transport and compute," Reichert said. "Talent brought the labs to London, but keeping them here will depend on whether the UK builds the infrastructure around them. Compute, energy and capital matter just as much as researchers."
FAQ
What AI companies announced London office expansions in recent months?
Anthropic and OpenAI both announced they took up larger office spaces in London in recent months. Cursor unveiled plans this week to open a London headquarters this summer, and Google said it will begin moving teams into a new 11-storey building in Kings Cross in the coming months. Databricks, Salesforce, Rivian, and Palantir are also increasing headcount or expanding campuses in the city.
Why are U.S. tech companies expanding in London?
Mike Wiseman, head of campuses at British Land, told CNBC that London has built a deep and mature technology ecosystem over many years, making it one of the few markets globally that can support large-scale international growth. Frederic Groussolles, partner at Heidrick & Struggles, told CNBC that London has emerged as one of the "deepest" pools of frontier AI talent outside of the U.S., anchored by a decade of investment from DeepMind, major research labs, and leading universities.
What challenges does London's tech sector face?
Mike Wiseman told CNBC there is a well-documented shortage of high-quality office space in core locations that is likely to continue until 2030. British Land estimates a 10.4 meter square foot shortfall of new or substantially refurbished space to 2030 across London. Ziv Reichert, partner at LocalGlobe, said concerns are emerging around whether infrastructure needed to support employees and rapidly increasing compute demands continues to match the pace of growth.
