OpenAI is reportedly planning to set up its permanent office in London, aiming to make the city its largest research hub outside the U.S.

The San Francisco-based firm told Reuters on Monday that it would start the office in 2027. The 88,500 square foot location, situated at Regent Quarter, will house 544 employees and is part of the company’s plan to expand its capacity to meet the growing demand in the UK.

OpenAI first opened its office in London in 2023. Currently, it employs approximately 200 people in London across various roles, including research, engineering, customer support, policy, and sales. The new office will serve as a significant expansion of the company’s presence in the city.

OpenAI did not immediately respond to Benzinga’s request for comments.

OpenAI stalls UK Stargate

This development comes after OpenAI decided to halt its UK Stargate project, despite earlier plans to deploy up to 8,000 GPUs with partners, Nscale and Nvidia Corp. (NASDAQ:NVDA). The Sam Altman-led company said it that it would proceed once conditions like regulation and energy costs are favorable, reported CNBC, last week.

High industrial energy costs and grid access delays are hindering the U.K.'s AI infrastructure push, alongside looming regulations on AI use of copyrighted content.

In December, OpenAI brought in former UK Chancellor George Osborne for a senior global role, where he will head the "OpenAI for Countries" initiative to help governments strengthen their AI capabilities, as global competition over AI infrastructure intensified.

A recent report suggested that the company aims to build a $100 billion advertising empire by 2030.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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