These days, U.K. AI startups are primarily focused on a pressing question: how can they secure office space in King’s Cross?
This area has become remarkably desirable, so much so that a venture capital firm recently clinched a deal by offering office space to a startup founder in the neighborhood. When I inquired about this rumor, the firm confirmed its commitment to securing deals for founders, including helping them find suitable office locations, but it chose not to divulge any specifics.
King’s Cross saw its rise to prominence around 2016 when DeepMind, freshly acquired by Google, established its presence there. This move attracted a wave of AI startups eager to tap into the powerhouse atmosphere that Google DeepMind created. Today, these startups are capitalizing on the rich talent pool available in this booming tech enclave.
As a result, King’s Cross has evolved into one of the leading AI hotspots globally, alongside San Francisco and Beijing. Locally known as the “Knowledge Quarter,” the area boasts major players such as OpenAI, Meta, Isomorphic Labs, Wayne, Recursive, and further down, Synthesia and Anthropic. The European Technology Network (ETN) has recently moved into a sleek new office nearby, and University College London is just around the corner.
Amid the bustling developments, trendy eateries like Hoppers and BAO have also set up shop, making the area more vibrant. From King’s Cross, founders can quickly get to Cambridge in 45 minutes to scout for talent or reach Paris in just two hours for potential business deals.
It’s hard to believe that just over two decades ago, this location was considered one of London’s most notorious districts. Investor Hussein Kanji from Hoxton Ventures recalls the area’s grim past during the ’80s when it became infamous for a narcotics market, with syringes found in tree trunks and gang activity on the rise. “In 1982, the local church was occupied for 12 days by the English Collective of Prostitutes,” Kanji reminisced. However, the early 2000s saw a real estate developer envision a new future for the area, transforming it into the AI hub of the U.K.
About 18 months ago, Kanji’s portfolio company, BioCorteX, relocated from Holborn to the Jellicoe building in King’s Cross to be at the center of this thriving landscape. “London is very active right now,” stated BioCorteX Co-Founder Nik Sharma, noting the influx of large tech firms. Notably, Jeff Bezos' AI venture, Prometheus, is rumored to be considering a move to the same location.
Currently, London is home to around 3,600 AI startups that have collectively raised approximately $12.1 billion out of the $14.8 billion generated in the city since the end of July, as per Dealroom. Since June, AI firms have leased over 1 million square feet of office space in London, leading prime rents in King’s Cross to climb 18% in the last three years, according to Chris Dunn from Knight Frank.
This percentage only reflects larger leases of at least 10,000 square feet, similar to those made by OpenAI and Prometheus. Shorter contracts are commanding even higher rates, and the vacancy rate for typical office spaces has plummeted to a mere 0.9%, showcasing how demand has far outstripped available supply.
A dominating discussion point in the area is the concept of sovereignty. The recent closure of access to Anthropic’s Mythos and Fable prompted many in the ecosystem to reconsider their reliance on external resources. Saul Klein, co-founder of VC firm Phoenix Court, explained that this led to the realization that Europe needs to cultivate its own AI capabilities. Phoenix Court operates in King’s Cross and has three portfolio companies in the vicinity, including Olix, which recently announced a staggering $3.3 billion valuation. Klein emphasized that the shutdown served as a sharp reminder that Europe cannot merely rely on rented AI expertise; it must foster its own development.
Klein posed a crucial question about the future: Will the U.K. invest in the necessary infrastructure—compute power, energy, and capital—to ensure sustainable self-reliance rather than just becoming a host to U.S. AI operations?
Top founders are choosing to stay put as well. Simon Kohl, who leads Latent Labs, maintains offices in King’s Cross and San Francisco. Currently, growth is more robust at the London office, prompting Kohl to express optimism about the local ecosystem. “The vibe now feels less about London catching up and more about it becoming one of the primary locales to launch a serious AI venture,” he noted.
If you stroll through the area, you might spot Wayve, a prominent player testing its autonomous vehicles. Co-founded by Alex Kendall in 2017, Wayve has emerged as one of London’s success stories. Kendall reflected on the transformation, stating, “A decade ago, launching a frontier AI company in London seemed unconventional. Now, it’s a clear choice.” In 2018, Wayve moved to King’s Cross to find a space that could function as both an office and a garage—something rare in Central London. He’s observed the ecosystem evolve to the point where startups can effectively operate, attract substantial investment, hire top-tier AI talent, and remain competitive on a global scale.
A stone’s throw from Anthropic’s new expansive office is Sierra, an AI agent builder, and Synthesia, which specializes in AI video technology. Laura Gonzalez Florez, Synthesia’s chief of staff and head of people, shared that the company moved into its modern office building last year to accommodate its expanding workforce. The area’s appeal lies mainly in its proximity to the airport and the concentration of potential investors, she stated.
With approximately two-thirds of Synthesia's engineers working remotely, the company benefits from a diverse, international talent pool, allowing it to scale rapidly. “From London, we can seamlessly hire people from a wide range of locations, from Slovenia to Portugal,” she shared.
It’s no surprise that London’s burgeoning AI scene has triggered a competitive race for talent. Job postings in the U.K. for AI roles have surged in recent years, as data from PwC indicates. When Anthropic announced its entry into the London market earlier this year, it posted a job for a machine learning research engineer with a salary range between £260,000 and £630,000—a stark contrast to the average salary of around £102,000 for similar positions in London. As with their counterparts in Silicon Valley, U.K. founders find themselves needing to secure larger funding rounds to remain competitive.
Zain Ali, founder of the AI legal firm Centuro based in King’s Cross, voiced a critical observation. He expressed that the genuine measure of success will be whether significant AI enterprises can be established, financed, and grown from the U.K. while continuing to draw top talent. If this trend persists, he predicted that King’s Cross could evolve from merely being an AI hub into an indispensable strategic asset for the U.K.
