OpenAI's first overseas branch officially announced to settle down, why do technology companies get together and run to London?

**Source: **Financial Association

EDIT Malan

Image source: Generated by Unbounded AI tool

London is wiping away the haze brought about by Brexit and has attracted many technology companies to settle in. OpenAI is undoubtedly the most important company among the companies that have officially announced to "join" London recently.

According to OpenAI CEO Altman, the London office will focus on improving research and engineering capabilities, and this expansion is an opportunity to attract world-class talent and promote AGI (General Artificial Intelligence) development and policy innovation.

OpenAI's move to make London an international outpost has also attracted more attention to London.

Prior to this, the United Kingdom was caught in the suspicion of corporate talent flight due to the quagmire of Brexit, and could not extricate itself. But looking back, the market may be surprised to learn that London has actually achieved a lot this year.

Picking up the missing king

On June 12th, London held a technology week event. According to participants, there was a long queue in front of the Queen Elizabeth II Convention and Exhibition Center, the event venue, which was in contrast to the line of tourists visiting the Palace of Westminster next door.

It is said that Silicon Valley is looking to London, which is an important reason for the crowded technology week.

From a fundamental point of view, London is the capital of the United Kingdom. It is home to two of the world's top universities, Cambridge and Oxford. Its talent pool far exceeds that of other European cities. Its AI and biotechnology research is at the forefront of the world. On the other hand, London is the UK city with the largest amount of venture capital funds in the UK.

There are also reports that as of 2021, there will be more than 1,300 AI companies in London. Google's largest artificial intelligence research department, Deepmind, is an AI pearl conceived in London.

In addition to these hardware conditions, the rise of London is also inseparable from some favorable timing and location. Although Silicon Valley has a strong entrepreneurial atmosphere, rising housing prices and living costs have limited the idea of many companies settling down; in China, more people choose to wait and see because of the friction with the United States.

In addition to these two technological powerhouses, Singapore in Asia has insufficient talent reserves, Europe has language difficulties in morality and law, and Canada and other places in North America cannot be the best candidates due to technical reserves and other reasons.

Finally, London, England has become the best solution for global technology companies and startups.

How hard the government is

Perhaps the story of "the wolf (recession) is coming" is too popular, and the British government's enthusiasm for a technological powerhouse is staggering.

According to participants of the Science and Technology Week, on the first day of the event, British Prime Minister Sunak and London Mayor Sadiq Aman Khan attended the meeting; on the second day, the leader of the opposition Labor Party and officials from the Ministry of Finance attended the meeting; on the third day, the Prime Minister of Finland appeared in the event.

This enthusiasm is also reflected in the new policies promulgated by the British government in the past two years, such as its cryptocurrency regulations that contrast sharply with those in the United States. Sunak once vowed to embrace blockchain technology to allow start-ups to flourish in the UK.

This is also an important reason for the well-known American venture capital Andreessen Horowitz to set up its first international office in London.

Chris Dixon, head of Andreessen Horowitz cryptocurrency investment, is very positive about London, saying that the British government sees the prospect of Web 3, and Sunak also promised that the UK will become the innovation center of Web 3.

In addition, the British government is also working hard to build a platform for the development of artificial intelligence. In September, London will host a summit to discuss AI regulation. However, compared with the EU's policy tightening trend, the UK seems to continue to follow an open attitude in the field of encryption, which also makes more artificial intelligence companies feel good about the UK.

For start-ups, the UK’s support policies are also very strong. The government has introduced a series of tax relief for small and medium-sized enterprises, and provided a large amount of open source data for use by entrepreneurial teams.

The digital sandbox program launched by the UK Financial Conduct Authority provides a controlled environment for companies to monitor the impact when testing products. While meeting the data needs of enterprises, it also protects the interests of consumers, which is both innovative and practical.

These are the UK's first steps in supporting the technology industry, and now it seems to be a good starting point for its long journey.

Antenna, the largest climate communication company in the United States, also opened its first overseas office in London this year. It believes that London is in a leading position in technological transformation and is also known globally as a green financial center.

More companies are starting to pay attention to London, maybe the next Silicon Valley is there.