OpenAI Expands Presence in London Amid Stargate Project Pause

OpenAI has announced the opening of its first permanent office in London, which will accommodate over 500 employees. This new facility, located in the King's Cross area, is part of the company's strategy to establish London as its largest research hub outside the United States. Currently, OpenAI employs approximately 200 staff in various roles, including research, engineering, and marketing. Phoebe Thacker, the London site lead, emphasized the city's strong talent pool and its significance to OpenAI's operations, stating, "London is already a key hub for our research and teams, and this new office gives us the space to keep building here."

OpenAI announces first permanent London office in UK expansion pushBarnet Borough TimesOpenAI Opens First Permanent London Office Amid Stargate PivotCNBCQuartz

Despite the expansion in London, OpenAI has paused its Stargate data center project in the U.K., citing high energy costs and regulatory challenges as primary barriers. The Stargate initiative, which was unveiled in September 2025, aimed to deploy up to 8,000 Nvidia GPUs across multiple sites, including Cobalt Park in North East England. OpenAI's spokesperson indicated that the company remains committed to exploring the project but will proceed only when conditions improve. The U.K. has some of the highest industrial electricity costs globally, and slow connections to the national grid have complicated infrastructure development.

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The decision to halt the Stargate project has raised concerns about the U.K.'s ambitions to become a leading destination for artificial intelligence. The U.K. government has prioritized positioning the country as a global AI hub, supported by the AI Opportunities Action Plan initiated in early 2025. Critics have pointed to the high costs and regulatory hurdles as significant obstacles to achieving this goal. OpenAI's pivot towards expanding its London office, while pausing infrastructure plans, reflects a strategic shift in its approach to international growth.

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OpenAI has reiterated its commitment to the U.K. market, with Thacker stating, "We’re seeing real momentum in how businesses, developers, and institutions across the U.K. are using AI, and we want to support that growth." The company continues to invest in local talent and operations, despite the setbacks with the Stargate project. Antony Walker, deputy CEO of techUK, remarked that OpenAI's investment will enhance the U.K.'s AI knowledge and research capabilities.

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The pause of the Stargate project has drawn criticism from various stakeholders who view it as a setback for the U.K.'s AI infrastructure ambitions. Concerns have been raised about the regulatory environment and the high cost of energy, which have been described as significant barriers to attracting further investment in AI technologies.

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• “Phoebe Thacker, OpenAI’s global head of data research programmes and London site lead, said: “The UK has an incredible depth of talent and a strong track record in AI.” — Phoebe Thacker, London Site Lead, OpenAI

Barnet Borough Times

• “We continue to explore Stargate U.K. and will move forward when the right conditions such as regulation and the cost of energy enable long-term infrastructure investment,” — OpenAI Spokesperson

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• “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,” — Antony Walker, Deputy CEO of techUK

OpenAI announces first permanent London office in UK expansion push

OpenAI's expansion in London signifies a commitment to the U.K. market, even as it navigates the complexities of infrastructure development in a challenging regulatory landscape.

OpenAI Opens First Permanent London Office Amid Stargate Pivot