via TechCrunch
From Red-Light District to Global AI Powerhouse: The Transformation of King's Cross
Every U.K. AI startup these days is asking the same question: How do we get office space in King’s Cross?
The area has become so sought-after that one venture capital firm allegedly clinched a deal by promising a founder office space in the neighborhood. When asked about the rumor, the firm told me, “We stop at nothing to win deals for and to support founders, including helping them source office space when needed,” declining to confirm or deny specifics.
The neighborhood’s rise began in 2016, when DeepMind—fresh off its acquisition by Google—moved in. A wave of AI startups soon followed, eager to tap into the Google DeepMind magic. Today, they flock there to leverage the dense cluster of AI talent that has made King’s Cross one of the world’s premier AI hubs, rivaled only by San Francisco and Beijing. Locals affectionately call it the “Knowledge Quarter,” a nod to the concentration of intellectual firepower. It’s now home to names like OpenAI, Meta, Isomorphic Labs, Cusp AI, Wayne, Recursive, and, a short distance away, Synthesia and Anthropic. The European Technology Network (ETN) just moved into a sleek new office nearby, while University College London sits just around the corner.
Amid the new developments, trendy eateries like Hoppers and BAO have taken root. Hop a train from King’s Cross, and founders can reach Cambridge in 45 minutes to scout talent or Paris in two hours to close a deal.
It’s hard to believe that just over two decades ago, this was one of London’s seediest neighborhoods.
“In the ’80s, crack and heroin turned the area into a major narcotics market,” recalls Hussein Kanji, an investor at Hoxton Ventures, describing syringes in tree trunks and gangs patrolling the streets. “In 1982, the local church was occupied by the English Collective of Prostitutes for 12 straight days.” Then, in the early 2000s, a real estate developer had a vision—and, well, “now it is the AI hotbed of the United Kingdom,” Kanji says. “What a change.”
Around 18 months ago, his portfolio company BioCorteX relocated from Holborn to the Jellicoe building in King’s Cross, hoping to be near the action. “Lots going on in London right now,” says Nik Sharma, BioCorteX’s co-founder. “Lots of hyperscalers moving in.” That reportedly includes Jeff Bezos’ AI venture Prometheus, which is said to be in talks to move into the Jellicoe as well.
London’s AI boom is now a measurable phenomenon. According to Dealroom, the city hosts around 3,600 AI startups, which have collectively raised approximately $12.1 billion of the $14.8 billion secured in the capital since late July. Since the start of June, AI-related startups have leased more than 1 million square feet of office space in London, per real estate firm Knight Frank. As a result, prime rents in King’s Cross have climbed 18% over the past three years, notes Chris Dunn, a commercial insight associate at the firm.
That figure covers only the largest leases—those spanning at least 10,000 square feet, like the ones OpenAI and Prometheus are signing. Smaller deals command even higher premiums, Dunn says, and the vacancy rate for conventional office space has fallen to a razor-thin 0.9%. “Demand has outstripped supply,” he observes.
Today, a hot topic in the area is sovereignty. It served as a wake-up call for many when Anthropic cut off access to Mythos and Fable this summer, prompting some in the ecosystem to conclude: “We’d better look elsewhere for resilience.” The scramble for space in King’s Cross is not just about prestige—it’s about securing a foothold in the epicenter of Europe’s AI revolution.