OpenAI Chooses London for Major Research Hub Expansion
In a significant boost for the UK's technology sector, OpenAI has announced plans to establish London as its largest research hub outside the United States. The ChatGPT developer confirmed it will substantially expand its London operation, which currently employs approximately 30 researchers. While the company declined to specify exact numbers for new roles or investment figures, the expansion represents a major commitment to the capital.
Minister Hails "Huge Vote of Confidence" in UK AI
Tech Secretary Liz Kendall welcomed the move, describing it as "a huge vote of confidence in the UK's world-leading position at the cutting edge of AI research." She emphasized that this decision reaffirms the UK's global leadership in pursuing AI innovation that is both safe and transformative. London Mayor Sadiq Khan expressed delight at OpenAI anchoring its major new research hub in the capital, noting London's reputation for world-class talent and renowned institutions.
Intensifying Battle for AI Talent
The expansion sets up a direct competition for specialized talent between OpenAI and Google DeepMind, which already employs around 2,000 people in the UK. Mark Chen, OpenAI's chief research officer, acknowledged that his company has previously hired from Google DeepMind and stated OpenAI would offer compensation "very competitive with what Google DeepMind is offering."
Chen explained: "AI talent is very valuable and we need to be competitive everywhere." He highlighted OpenAI's "bottom-up" culture, where researchers are encouraged to pursue their own ideas, as a significant attraction for potential recruits.
London Researchers Driving Key Innovations
According to Chen, staff in London will "own key components" of the company's frontier AI research, including crucial work on safe model development. London-based researchers are already contributing to products including Codex and GPT-5.2, supporting the company's latest breakthroughs.
The tech giant cited the UK's "unique concentration of world-class talent across machine learning and the sciences" along with its "strong culture of cross-disciplinary collaboration" as primary reasons for choosing London for this expansion.
Global Competition for AI Specialists Reaches Fever Pitch
The announcement comes as competition for AI specialists intensifies on both sides of the Atlantic. In the United States, bidding wars have resulted in mega compensation packages being offered to top engineers. Reports suggest Meta has offered some researchers up to $1 billion to join its AI unit.
In the UK, senior AI engineers at Google are working toward total compensation packages worth well over £1 million, according to data from jobs platform Levels.fyi. As a private company, OpenAI can offer equity that could increase substantially in value if the company goes public, and has already enabled staff to sell shares on secondary markets.
UK Faces Talent Shortage Concerns
While London remains the clear engine room of British technology—home to 57 of the country's 100 fastest-growing private tech firms according to The Sunday Times—concerns are mounting about talent shortages. Recent data from RSM UK showed applications from overseas tech workers seeking UK visas fell 11 percent quarter-on-quarter, despite government pledges to fast-track AI specialists and reimburse visa fees.
AI Development Accelerates at Breakneck Pace
The expansion reflects the rapid acceleration of AI development globally. Chen described the rise of AI agents—autonomous software capable of carrying out tasks with minimal human interaction—as a "step change" for the industry. "It really does feel like we've reached a level where we can rely on them and use them in the real world workforce," he stated, highlighting the transformative potential of current AI advancements.
