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The Most Worrying Bits from Bloomberg’s Worrisome AI Bubble Q&A with Jason Furman

The Most Worrying Bits from Bloomberg’s Worrisome AI Bubble Q&A with Jason Furman

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Which data points qualify as true recession indicators?

The yield curve, a comparison of short- and long-term interest rates, was scary recently, but does not suggest super high recession fears at the moment. The Sahm Rule raises alarms when there’s a sudden relative spike in unemployment, and it hasn’t technically been triggered yet despite incrementally worsening employment in recent months.

But how does the Bloomberg Rule work? That’s the one that lays out how many times a Bloomberg Q&A article with a normie economist can contain variations on the word “worry”? The one from Thursday with Jason Furman, which is specifically about an AI bubble, contains a deeply troubling 14 worries. I don’t want to be alarmist, but I’m not liking the data, folks.

Jason Furman is as normal as economists get: He’s a Harvard professor. He was chairman of the White House Council of Economic Advisers under president Barack Obama. In October he was on the podcast of conservative New York Times opinion columnist Ross Douthat to talk about this same topic, and that interview only contained one “worry.”

So why the spike? 

Furman says “I’m more worried about the financial valuation bubble than I am a technological bubble” in his first answer. This seemingly gets at some kind of granular distinction—as if the tech might be fantastic, but the companies can be overvalued anyway, and the second thing is the real problem. But what he says next sort of makes it sound like we should all worry about both equally:

“To justify financial valuations, you basically need two things: the technology works really, really well, and you can make a profit from that. The two threats to valuations are that we hit diminishing returns and a lot of the different scaling laws that have applied to date don’t apply in the future. Moreover, I don’t know that every scaling law translates economically. Every time your microchip in your computer gets two times as fast, you don’t write Word documents two times as fast or respond to emails two times as fast. In fact, a lot of that is almost like excess capacity that is building up in our computers, and that could be what happens in AI, even if it follows the law.”

That arguably describes one of the biggest AI stories of the year. When OpenAI released the GPT-5 model in August, whether or not it was a worthwhile incremental step or not, ChatGPT users clearly didn’t see enough of an upside to balance out the fact that they didn’t enjoy talking to it. OpenAI upgraded the model people were using as a friendship substitute, and it didn’t suddenly get exponentially warmer and more insightful. It arguably just had “excess capacity.”

If you’re still confused as to where the line is between a tech bubble and a valuation bubble, don’t worry because Bloomberg’s interviewer Shirin Ghaffary says she is too. Furman elaborates a bit, saying that separately from valuations, there are also “hundreds of billions of dollars a year being spent on data centers, energy and the like,” and that this is “an actual, real activity.” He compares this to internet infrastructure being built out during the dot com craze. But he continues:

The thing that would worry me is if it just ended up not working and adding to productivity. Right now, we’re seeing AI mostly on the demand side of our economy.

He later adds:

We do not have a US economy that is firing on all cylinders. We have a US economy that is firing on one cylinder right now. 

These are two important things to keep in mind about how normie economists see AI right now. Saying AI is on the demand side may feel silly—how much AI do you demand on a day-to-day basis? If you’re like me, zero to very little. But that’s not the demand he’s talking about. Think of the global economy as one giant, worryingly empty Home Depot. AI being on the demand side means it’s one giant, voracious customer in the global Home Depot buying enough drills, cement bags, and ladders to keep it in business for the time being.

But AI can’t just be the only big-spending customer in the global Home Depot forever, and what it’s going to build with all that stuff has to drive enough economic activity to drive other customers—in fact more customers than ever—into the global Home Depot so they can build things too.   

If we go back to that ChatGPT incident from this year, while that is a big part of why people use consumer-grade AI, it turns out not to be a particularly good example of the type of use case Furman thinks could drive growth. He also downplays the idea that AI is going to clobber employment in pursuit of efficiency, nor that this is a major risk or ever could be (“At every point in time that people have thought that in the past about this employment question, they’ve been wrong,” he says). 

Instead, Furman’s crystal ball contains a very murky image of what AI is supposed to do to keep the economy afloat:

“People in the wild are just slow and kind of complicated and figure out one use case this year and the next use case the next year, and want to test it eight different ways before they deploy it. Different businesses, different industries, different sectors will figure this out at different times, as opposed to you waking up one day and there’s a big bang. I should say that is a best guess, with an extreme caveat that anything could happen.”

Your mileage may vary on how reassuring this is but my interpretation of what Furman is saying is, basically, AI will be genuinely useful at as-yet unknown times, to as-yet unknown people. That’s not a totally unconvincing prediction. The really worrying part, though, is that it has to be true. 

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What every U.K. AI startup wants to know these days is, how can I get office space in King’s Cross?  

The area is so hot that a VC firm allegedly recently won a deal by promising a founder office space in the neighborhood. “We stop at nothing to win deals [for] and to support” founders, “including helping them source office space when needed,” the firm told me when asked about the rumor, declining to confirm or deny any details. 

The neighborhood’s popularity began back in 2016 when DeepMind — then newly acquired by Google — moved in. Soon after, a flood of AI startups followed, wanting to be around the Google DeepMind magic. Today, they hope to take advantage of the cluster of AI talent there. 

This has transformed King’s Cross into one of the world’s top AI hubs, rivaled only by San Francisco and Beijing. Around London, it’s known by the sobriquet “Knowledge Quarter,” as it’s home to names like OpenAI, Meta, Isomorphic Labs, Cusp AI, Wayne, Recursive, and, a little farther down the road, Synthesia and Anthropic. The European Technology Network (ETN) just moved into a glossy new office nearby, while University College London sits around the corner.  

Mixed in with the new developments are trendy food spots like Hoppers and BAO. Hop a train from King’s Cross, and founders can be in Cambridge in 45 minutes to source talent or can be in Paris in two hours to strike a deal.  

Who would have guessed that a little more than 20 years ago, this was one of the seediest areas in London?  

“In the ’80s, crack and heroin made the area a major narcotics market,” Hussein Kanji, an investor at Hoxton Ventures, said, recalling 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 dream and, well, “now it is the AI hotbed of the United Kingdom,” Kanji said. “What a change.” 
 
Around 18 months ago, his portfolio company BioCorteX moved from the neighborhood Holborn to the Jellicoe building in King’s Cross, hoping to be near the action. “Lots going on in London right now,” Nik Sharma, co-founder of BioCorteX, told me. “Lots of hyperscalers moving in.” That includes, reportedly, Jeff Bezos’ AI company Prometheus, which is also said to be in talks to move into the Jellicoe.  

There are around 3,600 AI startups in London, which, together, have raised around $12.1 billion out of the $14.8 billion raised in the city since late July, according to Dealroom. Since the start of June, AI-related startups have leased more than 1 million square feet of office space in London, according to the real estate firm Knight Frank. With that, prime rents in King’s Cross have risen 18% over the past three years, Chris Dunn, a commercial insight associate at the firm, told me. 
 
That percentage represents only the largest leases encompassing at least 10,000 square feet, like the ones OpenAI and Prometheus are signing. The shorter deals go for even more, he said, and now the vacancy rate for conventional office space is just 0.9%. “Demand has outstripped supply,” he continued.  

Today, one of the big topics of the area is sovereignty. It was a wake-up call for many when Anthropic shut off access to Mythos and Fable this summer, leaving some in the ecosystem to conclude: “We’d better look after ourselves,” Saul Klein, co-founder of the VC firm Phoenix Court, told me.  

Phoenix Court is located in the King’s Cross area and has three portfolio companies in the vicinity, including Olix (which just announced a $3.3 billion valuation), Early Health and CoMind. Robin Klein, co-founder of the firm, said the shutdown of Fable and Mythos access was a “small but sharp reminder that Europe can’t simply rent its AI capabilities and capacity; it needs to build and hold some of its own.” King’s Cross, he said, is where much of this building is actually happening.  

“The bigger question,” he continued, “is whether the U.K. builds the infrastructure, compute, energy, capital, to make this self-reliance durable, rather than just hosting outposts of U.S. labs.” 

This former notorious red-light district is now one of the world’s top AI hubs | TechCrunch What every U.K. AI startup wants to know these days is, how can I get office space in King’s Cross?   The area is so hot that a VC firm allegedly recently won a deal by promising a founder office space in the neighborhood. “We stop at nothing to win deals [for] and to support” founders, “including helping them source office space when needed,” the firm told me when asked about the rumor, declining to confirm or deny any details.  The neighborhood’s popularity began back in 2016 when DeepMind — then newly acquired by Google — moved in. Soon after, a flood of AI startups followed, wanting to be around the Google DeepMind magic. Today, they hope to take advantage of the cluster of AI talent there.  This has transformed King’s Cross into one of the world’s top AI hubs, rivaled only by San Francisco and Beijing. Around London, it’s known by the sobriquet “Knowledge Quarter,” as it’s home to names like OpenAI, Meta, Isomorphic Labs, Cusp AI, Wayne, Recursive, and, a little farther down the road, Synthesia and Anthropic. The European Technology Network (ETN) just moved into a glossy new office nearby, while University College London sits around the corner.   Mixed in with the new developments are trendy food spots like Hoppers and BAO. Hop a train from King’s Cross, and founders can be in Cambridge in 45 minutes to source talent or can be in Paris in two hours to strike a deal.   Who would have guessed that a little more than 20 years ago, this was one of the seediest areas in London?   “In the ’80s, crack and heroin made the area a major narcotics market,” Hussein Kanji, an investor at Hoxton Ventures, said, recalling 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 dream and, well, “now it is the AI hotbed of the United Kingdom,” Kanji said. “What a change.”  Around 18 months ago, his portfolio company BioCorteX moved from the neighborhood Holborn to the Jellicoe building in King’s Cross, hoping to be near the action. “Lots going on in London right now,” Nik Sharma, co-founder of BioCorteX, told me. “Lots of hyperscalers moving in.” That includes, reportedly, Jeff Bezos’ AI company Prometheus, which is also said to be in talks to move into the Jellicoe.   There are around 3,600 AI startups in London, which, together, have raised around .1 billion out of the .8 billion raised in the city since late July, according to Dealroom. Since the start of June, AI-related startups have leased more than 1 million square feet of office space in London, according to the real estate firm Knight Frank. With that, prime rents in King’s Cross have risen 18% over the past three years, Chris Dunn, a commercial insight associate at the firm, told me.  That percentage represents only the largest leases encompassing at least 10,000 square feet, like the ones OpenAI and Prometheus are signing. The shorter deals go for even more, he said, and now the vacancy rate for conventional office space is just 0.9%. “Demand has outstripped supply,” he continued.   Today, one of the big topics of the area is sovereignty. It was a wake-up call for many when Anthropic shut off access to Mythos and Fable this summer, leaving some in the ecosystem to conclude: “We’d better look after ourselves,” Saul Klein, co-founder of the VC firm Phoenix Court, told me.   Phoenix Court is located in the King’s Cross area and has three portfolio companies in the vicinity, including Olix (which just announced a .3 billion valuation), Early Health and CoMind. Robin Klein, co-founder of the firm, said the shutdown of Fable and Mythos access was a “small but sharp reminder that Europe can’t simply rent its AI capabilities and capacity; it needs to build and hold some of its own.” King’s Cross, he said, is where much of this building is actually happening.   “The bigger question,” he continued, “is whether the U.K. builds the infrastructure, compute, energy, capital, to make this self-reliance durable, rather than just hosting outposts of U.S. labs.”  Image Credits:Phoenix Court Top founders want to stay Simon Kohl, founder of Latent Labs, has offices in King’s Cross and San Francisco. The London office, at the moment, is growing faster, and he’s more bullish than ever on the ecosystem, he said. “The mood right now feels less like London trying to catch up and more like London becoming one of the default places to start a serious AI company,” he said.  Look around and you are likely to see Wayve testing its autonomous cars. Founded in 2017 by co-founder Alex Kendall, the unicorn is one of London’s biggest success stories.   “Ten years ago, building a frontier AI company from London felt like an unusual choice,” Kendall told me. “Now it feels like an obvious one.” Wayve moved into King’s Cross in 2018 looking for a space that could double as a garage — “a rare combination in Central London,” Kendall said. He has watched the ecosystem mature around him — and it’s now evident that a startup can stay in London, raise serious capital, hire world-class AI talent, and remain globally competitive, he said.  Down the street from Anthropic’s new 158,000-square-foot office is the AI agent builder Sierra and the AI video platform Synthesia.  Laura Gonzalez Florez, Synthesia’s chief of staff and head of people, says the company moved into its glossy new office building a year ago to accommodate its growing team. They were drawn to the area for the same reason as everyone else: “It’s very close to the airport … very close to where a lot of investors are,” she said.  Image Credits:Synthesia Around two-thirds of Synthesia’s engineers are remote, Gonzalez Florez said, letting the company tap into an affordable, international, and diverse talent pool and helping it scale faster. “From London, we can hire and work, without any problem, people from anywhere, from Slovenia to Portugal,” she said.   Unsurprisingly, London’s AI boom is also causing a talent war.U.K. AI job postings have skyrocketed in the past few years, per data from PwC. When Anthropic announced it moved into town earlier this year, it listed, for example, a salary range of £260,000 to £630,000 for a machine learning research engineer when the average salary in London for the same role is around £102,000. Some founders in the U.K., like those in Silicon Valley, are being forced to raise more and bigger rounds to keep up.  “The real test is whether more globally significant AI companies are founded, funded, and scaled from the U.K., while continuing to attract the world’s best talent to build them here,” Zain Ali, founder of the King’s Cross-based AI legal firm Centuro, told me. “If that continues to happen, King’s Cross won’t just be an AI hub. It’ll become one of the U.K.’s most important strategic assets.” When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.#Thisformernotorious #redlight #districtis #nowone #worlds #top #hubs #TechCrunchUK
Image Credits:Phoenix Court

Top founders want to stay

Simon Kohl, founder of Latent Labs, has offices in King’s Cross and San Francisco. The London office, at the moment, is growing faster, and he’s more bullish than ever on the ecosystem, he said. “The mood right now feels less like London trying to catch up and more like London becoming one of the default places to start a serious AI company,” he said. 
 
Look around and you are likely to see Wayve testing its autonomous cars. Founded in 2017 by co-founder Alex Kendall, the unicorn is one of London’s biggest success stories.  

“Ten years ago, building a frontier AI company from London felt like an unusual choice,” Kendall told me. “Now it feels like an obvious one.” Wayve moved into King’s Cross in 2018 looking for a space that could double as a garage — “a rare combination in Central London,” Kendall said. He has watched the ecosystem mature around him — and it’s now evident that a startup can stay in London, raise serious capital, hire world-class AI talent, and remain globally competitive, he said. 
 
Down the street from Anthropic’s new 158,000-square-foot office is the AI agent builder Sierra and the AI video platform Synthesia. 

Laura Gonzalez Florez, Synthesia’s chief of staff and head of people, says the company moved into its glossy new office building a year ago to accommodate its growing team. They were drawn to the area for the same reason as everyone else: “It’s very close to the airport … very close to where a lot of investors are,” she said. 

Image Credits:Synthesia

Around two-thirds of Synthesia’s engineers are remote, Gonzalez Florez said, letting the company tap into an affordable, international, and diverse talent pool and helping it scale faster. “From London, we can hire and work, without any problem, people from anywhere, from Slovenia to Portugal,” she said.  

Unsurprisingly, London’s AI boom is also causing a talent war.

U.K. AI job postings have skyrocketed in the past few years, per data from PwC. When Anthropic announced it moved into town earlier this year, it listed, for example, a salary range of £260,000 to £630,000 for a machine learning research engineer when the average salary in London for the same role is around £102,000. Some founders in the U.K., like those in Silicon Valley, are being forced to raise more and bigger rounds to keep up. 

“The real test is whether more globally significant AI companies are founded, funded, and scaled from the U.K., while continuing to attract the world’s best talent to build them here,” Zain Ali, founder of the King’s Cross-based AI legal firm Centuro, told me. “If that continues to happen, King’s Cross won’t just be an AI hub. It’ll become one of the U.K.’s most important strategic assets.”

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

#Thisformernotorious #redlight #districtis #nowone #worlds #top #hubs #TechCrunchUK">This former notorious red-light district is now one of the world’s top AI hubs | TechCrunch What every U.K. AI startup wants to know these days is, how can I get office space in King’s Cross?   The area is so hot that a VC firm allegedly recently won a deal by promising a founder office space in the neighborhood. “We stop at nothing to win deals [for] and to support” founders, “including helping them source office space when needed,” the firm told me when asked about the rumor, declining to confirm or deny any details.  The neighborhood’s popularity began back in 2016 when DeepMind — then newly acquired by Google — moved in. Soon after, a flood of AI startups followed, wanting to be around the Google DeepMind magic. Today, they hope to take advantage of the cluster of AI talent there.  This has transformed King’s Cross into one of the world’s top AI hubs, rivaled only by San Francisco and Beijing. Around London, it’s known by the sobriquet “Knowledge Quarter,” as it’s home to names like OpenAI, Meta, Isomorphic Labs, Cusp AI, Wayne, Recursive, and, a little farther down the road, Synthesia and Anthropic. The European Technology Network (ETN) just moved into a glossy new office nearby, while University College London sits around the corner.   Mixed in with the new developments are trendy food spots like Hoppers and BAO. Hop a train from King’s Cross, and founders can be in Cambridge in 45 minutes to source talent or can be in Paris in two hours to strike a deal.   Who would have guessed that a little more than 20 years ago, this was one of the seediest areas in London?   “In the ’80s, crack and heroin made the area a major narcotics market,” Hussein Kanji, an investor at Hoxton Ventures, said, recalling 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 dream and, well, “now it is the AI hotbed of the United Kingdom,” Kanji said. “What a change.”  Around 18 months ago, his portfolio company BioCorteX moved from the neighborhood Holborn to the Jellicoe building in King’s Cross, hoping to be near the action. “Lots going on in London right now,” Nik Sharma, co-founder of BioCorteX, told me. “Lots of hyperscalers moving in.” That includes, reportedly, Jeff Bezos’ AI company Prometheus, which is also said to be in talks to move into the Jellicoe.   There are around 3,600 AI startups in London, which, together, have raised around .1 billion out of the .8 billion raised in the city since late July, according to Dealroom. Since the start of June, AI-related startups have leased more than 1 million square feet of office space in London, according to the real estate firm Knight Frank. With that, prime rents in King’s Cross have risen 18% over the past three years, Chris Dunn, a commercial insight associate at the firm, told me.  That percentage represents only the largest leases encompassing at least 10,000 square feet, like the ones OpenAI and Prometheus are signing. The shorter deals go for even more, he said, and now the vacancy rate for conventional office space is just 0.9%. “Demand has outstripped supply,” he continued.   Today, one of the big topics of the area is sovereignty. It was a wake-up call for many when Anthropic shut off access to Mythos and Fable this summer, leaving some in the ecosystem to conclude: “We’d better look after ourselves,” Saul Klein, co-founder of the VC firm Phoenix Court, told me.   Phoenix Court is located in the King’s Cross area and has three portfolio companies in the vicinity, including Olix (which just announced a .3 billion valuation), Early Health and CoMind. Robin Klein, co-founder of the firm, said the shutdown of Fable and Mythos access was a “small but sharp reminder that Europe can’t simply rent its AI capabilities and capacity; it needs to build and hold some of its own.” King’s Cross, he said, is where much of this building is actually happening.   “The bigger question,” he continued, “is whether the U.K. builds the infrastructure, compute, energy, capital, to make this self-reliance durable, rather than just hosting outposts of U.S. labs.”  Image Credits:Phoenix Court Top founders want to stay Simon Kohl, founder of Latent Labs, has offices in King’s Cross and San Francisco. The London office, at the moment, is growing faster, and he’s more bullish than ever on the ecosystem, he said. “The mood right now feels less like London trying to catch up and more like London becoming one of the default places to start a serious AI company,” he said.  Look around and you are likely to see Wayve testing its autonomous cars. Founded in 2017 by co-founder Alex Kendall, the unicorn is one of London’s biggest success stories.   “Ten years ago, building a frontier AI company from London felt like an unusual choice,” Kendall told me. “Now it feels like an obvious one.” Wayve moved into King’s Cross in 2018 looking for a space that could double as a garage — “a rare combination in Central London,” Kendall said. He has watched the ecosystem mature around him — and it’s now evident that a startup can stay in London, raise serious capital, hire world-class AI talent, and remain globally competitive, he said.  Down the street from Anthropic’s new 158,000-square-foot office is the AI agent builder Sierra and the AI video platform Synthesia.  Laura Gonzalez Florez, Synthesia’s chief of staff and head of people, says the company moved into its glossy new office building a year ago to accommodate its growing team. They were drawn to the area for the same reason as everyone else: “It’s very close to the airport … very close to where a lot of investors are,” she said.  Image Credits:Synthesia Around two-thirds of Synthesia’s engineers are remote, Gonzalez Florez said, letting the company tap into an affordable, international, and diverse talent pool and helping it scale faster. “From London, we can hire and work, without any problem, people from anywhere, from Slovenia to Portugal,” she said.   Unsurprisingly, London’s AI boom is also causing a talent war.U.K. AI job postings have skyrocketed in the past few years, per data from PwC. When Anthropic announced it moved into town earlier this year, it listed, for example, a salary range of £260,000 to £630,000 for a machine learning research engineer when the average salary in London for the same role is around £102,000. Some founders in the U.K., like those in Silicon Valley, are being forced to raise more and bigger rounds to keep up.  “The real test is whether more globally significant AI companies are founded, funded, and scaled from the U.K., while continuing to attract the world’s best talent to build them here,” Zain Ali, founder of the King’s Cross-based AI legal firm Centuro, told me. “If that continues to happen, King’s Cross won’t just be an AI hub. It’ll become one of the U.K.’s most important strategic assets.” When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.#Thisformernotorious #redlight #districtis #nowone #worlds #top #hubs #TechCrunchUK

European Technology Network (ETN) just moved into a glossy new office nearby, while University College London sits around the corner.  

Mixed in with the new developments are trendy food spots like Hoppers and BAO. Hop a train from King’s Cross, and founders can be in Cambridge in 45 minutes to source talent or can be in Paris in two hours to strike a deal.  

Who would have guessed that a little more than 20 years ago, this was one of the seediest areas in London?  

“In the ’80s, crack and heroin made the area a major narcotics market,” Hussein Kanji, an investor at Hoxton Ventures, said, recalling 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 dream and, well, “now it is the AI hotbed of the United Kingdom,” Kanji said. “What a change.” 
 
Around 18 months ago, his portfolio company BioCorteX moved from the neighborhood Holborn to the Jellicoe building in King’s Cross, hoping to be near the action. “Lots going on in London right now,” Nik Sharma, co-founder of BioCorteX, told me. “Lots of hyperscalers moving in.” That includes, reportedly, Jeff Bezos’ AI company Prometheus, which is also said to be in talks to move into the Jellicoe.  

There are around 3,600 AI startups in London, which, together, have raised around $12.1 billion out of the $14.8 billion raised in the city since late July, according to Dealroom. Since the start of June, AI-related startups have leased more than 1 million square feet of office space in London, according to the real estate firm Knight Frank. With that, prime rents in King’s Cross have risen 18% over the past three years, Chris Dunn, a commercial insight associate at the firm, told me. 
 
That percentage represents only the largest leases encompassing at least 10,000 square feet, like the ones OpenAI and Prometheus are signing. The shorter deals go for even more, he said, and now the vacancy rate for conventional office space is just 0.9%. “Demand has outstripped supply,” he continued.  

Today, one of the big topics of the area is sovereignty. It was a wake-up call for many when Anthropic shut off access to Mythos and Fable this summer, leaving some in the ecosystem to conclude: “We’d better look after ourselves,” Saul Klein, co-founder of the VC firm Phoenix Court, told me.  

Phoenix Court is located in the King’s Cross area and has three portfolio companies in the vicinity, including Olix (which just announced a $3.3 billion valuation), Early Health and CoMind. Robin Klein, co-founder of the firm, said the shutdown of Fable and Mythos access was a “small but sharp reminder that Europe can’t simply rent its AI capabilities and capacity; it needs to build and hold some of its own.” King’s Cross, he said, is where much of this building is actually happening.  

“The bigger question,” he continued, “is whether the U.K. builds the infrastructure, compute, energy, capital, to make this self-reliance durable, rather than just hosting outposts of U.S. labs.” 

This former notorious red-light district is now one of the world’s top AI hubs | TechCrunch What every U.K. AI startup wants to know these days is, how can I get office space in King’s Cross?   The area is so hot that a VC firm allegedly recently won a deal by promising a founder office space in the neighborhood. “We stop at nothing to win deals [for] and to support” founders, “including helping them source office space when needed,” the firm told me when asked about the rumor, declining to confirm or deny any details.  The neighborhood’s popularity began back in 2016 when DeepMind — then newly acquired by Google — moved in. Soon after, a flood of AI startups followed, wanting to be around the Google DeepMind magic. Today, they hope to take advantage of the cluster of AI talent there.  This has transformed King’s Cross into one of the world’s top AI hubs, rivaled only by San Francisco and Beijing. Around London, it’s known by the sobriquet “Knowledge Quarter,” as it’s home to names like OpenAI, Meta, Isomorphic Labs, Cusp AI, Wayne, Recursive, and, a little farther down the road, Synthesia and Anthropic. The European Technology Network (ETN) just moved into a glossy new office nearby, while University College London sits around the corner.   Mixed in with the new developments are trendy food spots like Hoppers and BAO. Hop a train from King’s Cross, and founders can be in Cambridge in 45 minutes to source talent or can be in Paris in two hours to strike a deal.   Who would have guessed that a little more than 20 years ago, this was one of the seediest areas in London?   “In the ’80s, crack and heroin made the area a major narcotics market,” Hussein Kanji, an investor at Hoxton Ventures, said, recalling 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 dream and, well, “now it is the AI hotbed of the United Kingdom,” Kanji said. “What a change.”  Around 18 months ago, his portfolio company BioCorteX moved from the neighborhood Holborn to the Jellicoe building in King’s Cross, hoping to be near the action. “Lots going on in London right now,” Nik Sharma, co-founder of BioCorteX, told me. “Lots of hyperscalers moving in.” That includes, reportedly, Jeff Bezos’ AI company Prometheus, which is also said to be in talks to move into the Jellicoe.   There are around 3,600 AI startups in London, which, together, have raised around .1 billion out of the .8 billion raised in the city since late July, according to Dealroom. Since the start of June, AI-related startups have leased more than 1 million square feet of office space in London, according to the real estate firm Knight Frank. With that, prime rents in King’s Cross have risen 18% over the past three years, Chris Dunn, a commercial insight associate at the firm, told me.  That percentage represents only the largest leases encompassing at least 10,000 square feet, like the ones OpenAI and Prometheus are signing. The shorter deals go for even more, he said, and now the vacancy rate for conventional office space is just 0.9%. “Demand has outstripped supply,” he continued.   Today, one of the big topics of the area is sovereignty. It was a wake-up call for many when Anthropic shut off access to Mythos and Fable this summer, leaving some in the ecosystem to conclude: “We’d better look after ourselves,” Saul Klein, co-founder of the VC firm Phoenix Court, told me.   Phoenix Court is located in the King’s Cross area and has three portfolio companies in the vicinity, including Olix (which just announced a .3 billion valuation), Early Health and CoMind. Robin Klein, co-founder of the firm, said the shutdown of Fable and Mythos access was a “small but sharp reminder that Europe can’t simply rent its AI capabilities and capacity; it needs to build and hold some of its own.” King’s Cross, he said, is where much of this building is actually happening.   “The bigger question,” he continued, “is whether the U.K. builds the infrastructure, compute, energy, capital, to make this self-reliance durable, rather than just hosting outposts of U.S. labs.”  Image Credits:Phoenix Court Top founders want to stay Simon Kohl, founder of Latent Labs, has offices in King’s Cross and San Francisco. The London office, at the moment, is growing faster, and he’s more bullish than ever on the ecosystem, he said. “The mood right now feels less like London trying to catch up and more like London becoming one of the default places to start a serious AI company,” he said.  Look around and you are likely to see Wayve testing its autonomous cars. Founded in 2017 by co-founder Alex Kendall, the unicorn is one of London’s biggest success stories.   “Ten years ago, building a frontier AI company from London felt like an unusual choice,” Kendall told me. “Now it feels like an obvious one.” Wayve moved into King’s Cross in 2018 looking for a space that could double as a garage — “a rare combination in Central London,” Kendall said. He has watched the ecosystem mature around him — and it’s now evident that a startup can stay in London, raise serious capital, hire world-class AI talent, and remain globally competitive, he said.  Down the street from Anthropic’s new 158,000-square-foot office is the AI agent builder Sierra and the AI video platform Synthesia.  Laura Gonzalez Florez, Synthesia’s chief of staff and head of people, says the company moved into its glossy new office building a year ago to accommodate its growing team. They were drawn to the area for the same reason as everyone else: “It’s very close to the airport … very close to where a lot of investors are,” she said.  Image Credits:Synthesia Around two-thirds of Synthesia’s engineers are remote, Gonzalez Florez said, letting the company tap into an affordable, international, and diverse talent pool and helping it scale faster. “From London, we can hire and work, without any problem, people from anywhere, from Slovenia to Portugal,” she said.   Unsurprisingly, London’s AI boom is also causing a talent war.U.K. AI job postings have skyrocketed in the past few years, per data from PwC. When Anthropic announced it moved into town earlier this year, it listed, for example, a salary range of £260,000 to £630,000 for a machine learning research engineer when the average salary in London for the same role is around £102,000. Some founders in the U.K., like those in Silicon Valley, are being forced to raise more and bigger rounds to keep up.  “The real test is whether more globally significant AI companies are founded, funded, and scaled from the U.K., while continuing to attract the world’s best talent to build them here,” Zain Ali, founder of the King’s Cross-based AI legal firm Centuro, told me. “If that continues to happen, King’s Cross won’t just be an AI hub. It’ll become one of the U.K.’s most important strategic assets.” When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.#Thisformernotorious #redlight #districtis #nowone #worlds #top #hubs #TechCrunchUK
Image Credits:Phoenix Court

Top founders want to stay

Simon Kohl, founder of Latent Labs, has offices in King’s Cross and San Francisco. The London office, at the moment, is growing faster, and he’s more bullish than ever on the ecosystem, he said. “The mood right now feels less like London trying to catch up and more like London becoming one of the default places to start a serious AI company,” he said. 
 
Look around and you are likely to see Wayve testing its autonomous cars. Founded in 2017 by co-founder Alex Kendall, the unicorn is one of London’s biggest success stories.  

“Ten years ago, building a frontier AI company from London felt like an unusual choice,” Kendall told me. “Now it feels like an obvious one.” Wayve moved into King’s Cross in 2018 looking for a space that could double as a garage — “a rare combination in Central London,” Kendall said. He has watched the ecosystem mature around him — and it’s now evident that a startup can stay in London, raise serious capital, hire world-class AI talent, and remain globally competitive, he said. 
 
Down the street from Anthropic’s new 158,000-square-foot office is the AI agent builder Sierra and the AI video platform Synthesia. 

Laura Gonzalez Florez, Synthesia’s chief of staff and head of people, says the company moved into its glossy new office building a year ago to accommodate its growing team. They were drawn to the area for the same reason as everyone else: “It’s very close to the airport … very close to where a lot of investors are,” she said. 

Image Credits:Synthesia

Around two-thirds of Synthesia’s engineers are remote, Gonzalez Florez said, letting the company tap into an affordable, international, and diverse talent pool and helping it scale faster. “From London, we can hire and work, without any problem, people from anywhere, from Slovenia to Portugal,” she said.  

Unsurprisingly, London’s AI boom is also causing a talent war.

U.K. AI job postings have skyrocketed in the past few years, per data from PwC. When Anthropic announced it moved into town earlier this year, it listed, for example, a salary range of £260,000 to £630,000 for a machine learning research engineer when the average salary in London for the same role is around £102,000. Some founders in the U.K., like those in Silicon Valley, are being forced to raise more and bigger rounds to keep up. 

“The real test is whether more globally significant AI companies are founded, funded, and scaled from the U.K., while continuing to attract the world’s best talent to build them here,” Zain Ali, founder of the King’s Cross-based AI legal firm Centuro, told me. “If that continues to happen, King’s Cross won’t just be an AI hub. It’ll become one of the U.K.’s most important strategic assets.”

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

#Thisformernotorious #redlight #districtis #nowone #worlds #top #hubs #TechCrunchUK">This former notorious red-light district is now one of the world’s top AI hubs | TechCrunch

What every U.K. AI startup wants to know these days is, how can I get office space in King’s Cross?  

The area is so hot that a VC firm allegedly recently won a deal by promising a founder office space in the neighborhood. “We stop at nothing to win deals [for] and to support” founders, “including helping them source office space when needed,” the firm told me when asked about the rumor, declining to confirm or deny any details. 

The neighborhood’s popularity began back in 2016 when DeepMind — then newly acquired by Google — moved in. Soon after, a flood of AI startups followed, wanting to be around the Google DeepMind magic. Today, they hope to take advantage of the cluster of AI talent there. 

This has transformed King’s Cross into one of the world’s top AI hubs, rivaled only by San Francisco and Beijing. Around London, it’s known by the sobriquet “Knowledge Quarter,” as it’s home to names like OpenAI, Meta, Isomorphic Labs, Cusp AI, Wayne, Recursive, and, a little farther down the road, Synthesia and Anthropic. The European Technology Network (ETN) just moved into a glossy new office nearby, while University College London sits around the corner.  

Mixed in with the new developments are trendy food spots like Hoppers and BAO. Hop a train from King’s Cross, and founders can be in Cambridge in 45 minutes to source talent or can be in Paris in two hours to strike a deal.  

Who would have guessed that a little more than 20 years ago, this was one of the seediest areas in London?  

“In the ’80s, crack and heroin made the area a major narcotics market,” Hussein Kanji, an investor at Hoxton Ventures, said, recalling 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 dream and, well, “now it is the AI hotbed of the United Kingdom,” Kanji said. “What a change.” 
 
Around 18 months ago, his portfolio company BioCorteX moved from the neighborhood Holborn to the Jellicoe building in King’s Cross, hoping to be near the action. “Lots going on in London right now,” Nik Sharma, co-founder of BioCorteX, told me. “Lots of hyperscalers moving in.” That includes, reportedly, Jeff Bezos’ AI company Prometheus, which is also said to be in talks to move into the Jellicoe.  

There are around 3,600 AI startups in London, which, together, have raised around $12.1 billion out of the $14.8 billion raised in the city since late July, according to Dealroom. Since the start of June, AI-related startups have leased more than 1 million square feet of office space in London, according to the real estate firm Knight Frank. With that, prime rents in King’s Cross have risen 18% over the past three years, Chris Dunn, a commercial insight associate at the firm, told me. 
 
That percentage represents only the largest leases encompassing at least 10,000 square feet, like the ones OpenAI and Prometheus are signing. The shorter deals go for even more, he said, and now the vacancy rate for conventional office space is just 0.9%. “Demand has outstripped supply,” he continued.  

Today, one of the big topics of the area is sovereignty. It was a wake-up call for many when Anthropic shut off access to Mythos and Fable this summer, leaving some in the ecosystem to conclude: “We’d better look after ourselves,” Saul Klein, co-founder of the VC firm Phoenix Court, told me.  

Phoenix Court is located in the King’s Cross area and has three portfolio companies in the vicinity, including Olix (which just announced a $3.3 billion valuation), Early Health and CoMind. Robin Klein, co-founder of the firm, said the shutdown of Fable and Mythos access was a “small but sharp reminder that Europe can’t simply rent its AI capabilities and capacity; it needs to build and hold some of its own.” King’s Cross, he said, is where much of this building is actually happening.  

“The bigger question,” he continued, “is whether the U.K. builds the infrastructure, compute, energy, capital, to make this self-reliance durable, rather than just hosting outposts of U.S. labs.” 

This former notorious red-light district is now one of the world’s top AI hubs | TechCrunch What every U.K. AI startup wants to know these days is, how can I get office space in King’s Cross?   The area is so hot that a VC firm allegedly recently won a deal by promising a founder office space in the neighborhood. “We stop at nothing to win deals [for] and to support” founders, “including helping them source office space when needed,” the firm told me when asked about the rumor, declining to confirm or deny any details.  The neighborhood’s popularity began back in 2016 when DeepMind — then newly acquired by Google — moved in. Soon after, a flood of AI startups followed, wanting to be around the Google DeepMind magic. Today, they hope to take advantage of the cluster of AI talent there.  This has transformed King’s Cross into one of the world’s top AI hubs, rivaled only by San Francisco and Beijing. Around London, it’s known by the sobriquet “Knowledge Quarter,” as it’s home to names like OpenAI, Meta, Isomorphic Labs, Cusp AI, Wayne, Recursive, and, a little farther down the road, Synthesia and Anthropic. The European Technology Network (ETN) just moved into a glossy new office nearby, while University College London sits around the corner.   Mixed in with the new developments are trendy food spots like Hoppers and BAO. Hop a train from King’s Cross, and founders can be in Cambridge in 45 minutes to source talent or can be in Paris in two hours to strike a deal.   Who would have guessed that a little more than 20 years ago, this was one of the seediest areas in London?   “In the ’80s, crack and heroin made the area a major narcotics market,” Hussein Kanji, an investor at Hoxton Ventures, said, recalling 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 dream and, well, “now it is the AI hotbed of the United Kingdom,” Kanji said. “What a change.”  Around 18 months ago, his portfolio company BioCorteX moved from the neighborhood Holborn to the Jellicoe building in King’s Cross, hoping to be near the action. “Lots going on in London right now,” Nik Sharma, co-founder of BioCorteX, told me. “Lots of hyperscalers moving in.” That includes, reportedly, Jeff Bezos’ AI company Prometheus, which is also said to be in talks to move into the Jellicoe.   There are around 3,600 AI startups in London, which, together, have raised around .1 billion out of the .8 billion raised in the city since late July, according to Dealroom. Since the start of June, AI-related startups have leased more than 1 million square feet of office space in London, according to the real estate firm Knight Frank. With that, prime rents in King’s Cross have risen 18% over the past three years, Chris Dunn, a commercial insight associate at the firm, told me.  That percentage represents only the largest leases encompassing at least 10,000 square feet, like the ones OpenAI and Prometheus are signing. The shorter deals go for even more, he said, and now the vacancy rate for conventional office space is just 0.9%. “Demand has outstripped supply,” he continued.   Today, one of the big topics of the area is sovereignty. It was a wake-up call for many when Anthropic shut off access to Mythos and Fable this summer, leaving some in the ecosystem to conclude: “We’d better look after ourselves,” Saul Klein, co-founder of the VC firm Phoenix Court, told me.   Phoenix Court is located in the King’s Cross area and has three portfolio companies in the vicinity, including Olix (which just announced a .3 billion valuation), Early Health and CoMind. Robin Klein, co-founder of the firm, said the shutdown of Fable and Mythos access was a “small but sharp reminder that Europe can’t simply rent its AI capabilities and capacity; it needs to build and hold some of its own.” King’s Cross, he said, is where much of this building is actually happening.   “The bigger question,” he continued, “is whether the U.K. builds the infrastructure, compute, energy, capital, to make this self-reliance durable, rather than just hosting outposts of U.S. labs.”  Image Credits:Phoenix Court Top founders want to stay Simon Kohl, founder of Latent Labs, has offices in King’s Cross and San Francisco. The London office, at the moment, is growing faster, and he’s more bullish than ever on the ecosystem, he said. “The mood right now feels less like London trying to catch up and more like London becoming one of the default places to start a serious AI company,” he said.  Look around and you are likely to see Wayve testing its autonomous cars. Founded in 2017 by co-founder Alex Kendall, the unicorn is one of London’s biggest success stories.   “Ten years ago, building a frontier AI company from London felt like an unusual choice,” Kendall told me. “Now it feels like an obvious one.” Wayve moved into King’s Cross in 2018 looking for a space that could double as a garage — “a rare combination in Central London,” Kendall said. He has watched the ecosystem mature around him — and it’s now evident that a startup can stay in London, raise serious capital, hire world-class AI talent, and remain globally competitive, he said.  Down the street from Anthropic’s new 158,000-square-foot office is the AI agent builder Sierra and the AI video platform Synthesia.  Laura Gonzalez Florez, Synthesia’s chief of staff and head of people, says the company moved into its glossy new office building a year ago to accommodate its growing team. They were drawn to the area for the same reason as everyone else: “It’s very close to the airport … very close to where a lot of investors are,” she said.  Image Credits:Synthesia Around two-thirds of Synthesia’s engineers are remote, Gonzalez Florez said, letting the company tap into an affordable, international, and diverse talent pool and helping it scale faster. “From London, we can hire and work, without any problem, people from anywhere, from Slovenia to Portugal,” she said.   Unsurprisingly, London’s AI boom is also causing a talent war.U.K. AI job postings have skyrocketed in the past few years, per data from PwC. When Anthropic announced it moved into town earlier this year, it listed, for example, a salary range of £260,000 to £630,000 for a machine learning research engineer when the average salary in London for the same role is around £102,000. Some founders in the U.K., like those in Silicon Valley, are being forced to raise more and bigger rounds to keep up.  “The real test is whether more globally significant AI companies are founded, funded, and scaled from the U.K., while continuing to attract the world’s best talent to build them here,” Zain Ali, founder of the King’s Cross-based AI legal firm Centuro, told me. “If that continues to happen, King’s Cross won’t just be an AI hub. It’ll become one of the U.K.’s most important strategic assets.” When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.#Thisformernotorious #redlight #districtis #nowone #worlds #top #hubs #TechCrunchUK
Image Credits:Phoenix Court

Top founders want to stay

Simon Kohl, founder of Latent Labs, has offices in King’s Cross and San Francisco. The London office, at the moment, is growing faster, and he’s more bullish than ever on the ecosystem, he said. “The mood right now feels less like London trying to catch up and more like London becoming one of the default places to start a serious AI company,” he said. 
 
Look around and you are likely to see Wayve testing its autonomous cars. Founded in 2017 by co-founder Alex Kendall, the unicorn is one of London’s biggest success stories.  

“Ten years ago, building a frontier AI company from London felt like an unusual choice,” Kendall told me. “Now it feels like an obvious one.” Wayve moved into King’s Cross in 2018 looking for a space that could double as a garage — “a rare combination in Central London,” Kendall said. He has watched the ecosystem mature around him — and it’s now evident that a startup can stay in London, raise serious capital, hire world-class AI talent, and remain globally competitive, he said. 
 
Down the street from Anthropic’s new 158,000-square-foot office is the AI agent builder Sierra and the AI video platform Synthesia. 

Laura Gonzalez Florez, Synthesia’s chief of staff and head of people, says the company moved into its glossy new office building a year ago to accommodate its growing team. They were drawn to the area for the same reason as everyone else: “It’s very close to the airport … very close to where a lot of investors are,” she said. 

Image Credits:Synthesia

Around two-thirds of Synthesia’s engineers are remote, Gonzalez Florez said, letting the company tap into an affordable, international, and diverse talent pool and helping it scale faster. “From London, we can hire and work, without any problem, people from anywhere, from Slovenia to Portugal,” she said.  

Unsurprisingly, London’s AI boom is also causing a talent war.

U.K. AI job postings have skyrocketed in the past few years, per data from PwC. When Anthropic announced it moved into town earlier this year, it listed, for example, a salary range of £260,000 to £630,000 for a machine learning research engineer when the average salary in London for the same role is around £102,000. Some founders in the U.K., like those in Silicon Valley, are being forced to raise more and bigger rounds to keep up. 

“The real test is whether more globally significant AI companies are founded, funded, and scaled from the U.K., while continuing to attract the world’s best talent to build them here,” Zain Ali, founder of the King’s Cross-based AI legal firm Centuro, told me. “If that continues to happen, King’s Cross won’t just be an AI hub. It’ll become one of the U.K.’s most important strategic assets.”

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

#Thisformernotorious #redlight #districtis #nowone #worlds #top #hubs #TechCrunchUK
Why Remote Server Access Is a Common Attack Vector

Every cloud server exposes at least one remote access point – usually SSH on port 22 – and that port is scanned constantly by bots looking for weak credentials. Password-based login is the most common way a system can be attacked by brute force, and it is quite common with a standard setup that the system is left in a state where an admin/user of that system – “root user” – can log in directly by guessing the user ID and the password combination. Add in shared team credentials, forgotten firewall rules from old projects, and staging servers left publicly reachable, and it’s clear why misconfigured remote access – not zero-day exploits – is behind most cloud server compromises. The fix is simple, though you’ll need to do some setup yourself instead of trusting the default setting.

How to lock down SSH access in the right way

The best way to secure remote access is through a series of small improvements rather than one major overhaul. The following is a real working method:

  1. Switch to SSH key authentication, then turn off password login completely in the same location: sshd_config. Keys are far harder to brute-force than passwords.
  2. Disable root login over SSH and require a non-root user with sudo privileges instead; this is a security advantage that even without any change, one key compromising would limit the impact.
  3. Change the default SSH port away from 22 to cut down on automated scanning noise (not a security measure on its own, but it reduces log clutter).
  4. Restrict access by IP using your firewall or security group, allowing SSH only from known office or VPN IP ranges rather than the entire internet.
  5. Add a VPN as a connection layer for anyone accessing servers from outside a trusted network – a VPN like Planet VPN’s free VPN service can encrypt the connection between a remote worker’s laptop and the server before SSH traffic ever leaves their device, which matters especially on public wi-fi or shared networks.

Every step you take closes the doors that the attacker may open slightly, and when you combine everything, you would have a door to a series of locked gates.

Why Do I Need a Bastion Host?

When it comes to teams working with many servers, deploying a bastion host (jump box) may be a clean and effective way to solve the long-term problem. With this method, you only expose SSH to the bastion, and the other servers accept it only when it’s from the bastion’s internal IP. This centralizes logging and makes auditing access far simpler.

Using a virtual private network (VPN) and a bastion host together is perfectly fine – and many solutions use both: a safe way to access the private network via a VPN, followed by use of a bastion host to restrict which servers can be accessed. Some teams may decide to forgo the bastion because they don’t have the manpower to manage one, and so use a combination of a VPN and a set of firewall rules that still quite a bit lowers the exposure, but without the extra effort.

Mistakes Leading to Leaving Cloud Servers Open

The Mistakes That Cause Leaving Cloud Servers Open: Even the safest development teams may have slip-ups from time to time. One of the most frequent is leaving staged, or test servers with relaxed firewall rules equivalent to those of the production environment – hackers don’t concern themselves with which environment they first land on. Another frequent error is reusing the same SSH key on several servers and clients, causing one hacked laptop to compromise all servers that key has access to.

Another common human error is not removing or changing access when someone leaves the team, so stale credentials remain valid and accessible. At last, putting trust in the strategy of “security through obscurity” – meaning one thinks that setting up the unusual port or hiding the hostname from the public is actually sufficient security – creates a wrong impression of security. This is mostly true; in reality, modern-day attackers scan all ports anyway, and there is no way to hide from them.

System Administrators Guide to Secure Remote Access 

Prohibit SSH password logins totally and depend exclusively on key-based authentication

  • Surely no one wants to type in the password every time; because of this, use only key-based authentication 
  • Deter the user from logging in as root by default and instead use the sudo command to do root tasks
  • A firewall or security group rule can provide great help with IP address-based restrictions on SSH logins 
  • For access that comes from untrusted sources or external networks, use a secure tunnel like a vpn or bastion host
  • Periodically change SSH keys and inspect access lists
  • Maintain records of login attempts and detect brute-force attacks as quickly as possible

Frequently Asked Questions

What is the principal means by which cloud servers suffer break-ins through remote access?

By far the biggest reason why this can happen is unauthorized password-based SSH logins that have been cracked by brute force. The scenario is most likely to develop where the administrator allows root login via password and leaves the default port open.

Sufficient security measures for the server via SSH keys: Do you think it is safe to rely only on key authentication? 

It is true that SSH keys drastically decrease the danger of a successful brute-force attack. However, if there is only key authentication on the server, there are still risks – the server administrator can always enable root login or disable the IP-based login restrictions. So it is recommended to always have these three in the server configuration: disabled root login, restricted access to known IPs, and rotating the keys regularly as the main components of meaningful protection. 

Is it really necessary to set up a separate VPN network while I am able to connect via SSH keys? 

A VPN gives extra security by first encrypting your computer traffic before it reaches your network, where the SSH connection will be used. This is mostly important when working on untrusted networks – like public wi-fi – where there is a threat of a potential hacker in your local network looking at your data.

Bastion host vs VPN as methods of accessing the server? 

The bastion host works by funneling SSH sessions from many users through a single, carefully monitored server point while the rest of the network (and mostly the servers) remains protected from the internet. At the same time, a vpn will fully encrypt the communication between the user and the corporate network or servers. The combination is very common among larger security teams as a part of the defense-in-depth principle. 

How often should SSH keys be rotated? 

The ideal period to change your SSH keys depends on the security practices of your organization, but generally a good practice is to change SSH keys between 90 and 180 days, or in the case that the user who had access with the key leaves or is no longer able to be contacted, such as when a team member leaves.

Why is only changing the port number for SSH enough to secure that port?

Changing the port reduces automated scanning noise in your logs but isn’t a real security control on its own — port scanners check all ports, so it should never replace key-based auth and firewall rules.

#Secure #Remote #Access #Cloud #ServerCloud,remote access">How to Secure Remote Access to Your Cloud Server in 2026 Protection against unauthorized remote logins to your cloud server is a matter of SSH key-based authentication, a strict security policy on the firewall, two-factor authentication, and a secure communication channel – no individual component will give adequate protection by itself. The major risk point in breaches is not the server but the open door to remote login. To patch that vulnerability, you need a series of countermeasures, not a magical setting. Why Remote Server Access Is a Common Attack Vector Every cloud server exposes at least one remote access point – usually SSH on port 22 – and that port is scanned constantly by bots looking for weak credentials. Password-based login is the most common way a system can be attacked by brute force, and it is quite common with a standard setup that the system is left in a state where an admin/user of that system – “root user” – can log in directly by guessing the user ID and the password combination. Add in shared team credentials, forgotten firewall rules from old projects, and staging servers left publicly reachable, and it’s clear why misconfigured remote access – not zero-day exploits – is behind most cloud server compromises. The fix is simple, though you’ll need to do some setup yourself instead of trusting the default setting. How to lock down SSH access in the right way The best way to secure remote access is through a series of small improvements rather than one major overhaul. The following is a real working method: Switch to SSH key authentication, then turn off password login completely in the same location: sshd_config. Keys are far harder to brute-force than passwords. Disable root login over SSH and require a non-root user with sudo privileges instead; this is a security advantage that even without any change, one key compromising would limit the impact. Change the default SSH port away from 22 to cut down on automated scanning noise (not a security measure on its own, but it reduces log clutter). Restrict access by IP using your firewall or security group, allowing SSH only from known office or VPN IP ranges rather than the entire internet. Add a VPN as a connection layer for anyone accessing servers from outside a trusted network – a VPN like Planet VPN’s free VPN service can encrypt the connection between a remote worker’s laptop and the server before SSH traffic ever leaves their device, which matters especially on public wi-fi or shared networks. Every step you take closes the doors that the attacker may open slightly, and when you combine everything, you would have a door to a series of locked gates. Why Do I Need a Bastion Host? When it comes to teams working with many servers, deploying a bastion host (jump box) may be a clean and effective way to solve the long-term problem. With this method, you only expose SSH to the bastion, and the other servers accept it only when it’s from the bastion’s internal IP. This centralizes logging and makes auditing access far simpler. Using a virtual private network (VPN) and a bastion host together is perfectly fine – and many solutions use both: a safe way to access the private network via a VPN, followed by use of a bastion host to restrict which servers can be accessed. Some teams may decide to forgo the bastion because they don’t have the manpower to manage one, and so use a combination of a VPN and a set of firewall rules that still quite a bit lowers the exposure, but without the extra effort. Mistakes Leading to Leaving Cloud Servers Open The Mistakes That Cause Leaving Cloud Servers Open: Even the safest development teams may have slip-ups from time to time. One of the most frequent is leaving staged, or test servers with relaxed firewall rules equivalent to those of the production environment – hackers don’t concern themselves with which environment they first land on. Another frequent error is reusing the same SSH key on several servers and clients, causing one hacked laptop to compromise all servers that key has access to. Another common human error is not removing or changing access when someone leaves the team, so stale credentials remain valid and accessible. At last, putting trust in the strategy of “security through obscurity” – meaning one thinks that setting up the unusual port or hiding the hostname from the public is actually sufficient security – creates a wrong impression of security. This is mostly true; in reality, modern-day attackers scan all ports anyway, and there is no way to hide from them. System Administrators Guide to Secure Remote Access  Prohibit SSH password logins totally and depend exclusively on key-based authentication Surely no one wants to type in the password every time; because of this, use only key-based authentication  Deter the user from logging in as root by default and instead use the sudo command to do root tasks A firewall or security group rule can provide great help with IP address-based restrictions on SSH logins  For access that comes from untrusted sources or external networks, use a secure tunnel like a vpn or bastion host Periodically change SSH keys and inspect access lists Maintain records of login attempts and detect brute-force attacks as quickly as possible Frequently Asked Questions What is the principal means by which cloud servers suffer break-ins through remote access? By far the biggest reason why this can happen is unauthorized password-based SSH logins that have been cracked by brute force. The scenario is most likely to develop where the administrator allows root login via password and leaves the default port open. Sufficient security measures for the server via SSH keys: Do you think it is safe to rely only on key authentication?  It is true that SSH keys drastically decrease the danger of a successful brute-force attack. However, if there is only key authentication on the server, there are still risks – the server administrator can always enable root login or disable the IP-based login restrictions. So it is recommended to always have these three in the server configuration: disabled root login, restricted access to known IPs, and rotating the keys regularly as the main components of meaningful protection.  Is it really necessary to set up a separate VPN network while I am able to connect via SSH keys?  A VPN gives extra security by first encrypting your computer traffic before it reaches your network, where the SSH connection will be used. This is mostly important when working on untrusted networks – like public wi-fi – where there is a threat of a potential hacker in your local network looking at your data. Bastion host vs VPN as methods of accessing the server?  The bastion host works by funneling SSH sessions from many users through a single, carefully monitored server point while the rest of the network (and mostly the servers) remains protected from the internet. At the same time, a vpn will fully encrypt the communication between the user and the corporate network or servers. The combination is very common among larger security teams as a part of the defense-in-depth principle.  How often should SSH keys be rotated?  The ideal period to change your SSH keys depends on the security practices of your organization, but generally a good practice is to change SSH keys between 90 and 180 days, or in the case that the user who had access with the key leaves or is no longer able to be contacted, such as when a team member leaves. Why is only changing the port number for SSH enough to secure that port? Changing the port reduces automated scanning noise in your logs but isn’t a real security control on its own — port scanners check all ports, so it should never replace key-based auth and firewall rules. #Secure #Remote #Access #Cloud #ServerCloud,remote access

  1. free VPN service can encrypt the connection between a remote worker’s laptop and the server before SSH traffic ever leaves their device, which matters especially on public wi-fi or shared networks.

Every step you take closes the doors that the attacker may open slightly, and when you combine everything, you would have a door to a series of locked gates.

Why Do I Need a Bastion Host?

When it comes to teams working with many servers, deploying a bastion host (jump box) may be a clean and effective way to solve the long-term problem. With this method, you only expose SSH to the bastion, and the other servers accept it only when it’s from the bastion’s internal IP. This centralizes logging and makes auditing access far simpler.

Using a virtual private network (VPN) and a bastion host together is perfectly fine – and many solutions use both: a safe way to access the private network via a VPN, followed by use of a bastion host to restrict which servers can be accessed. Some teams may decide to forgo the bastion because they don’t have the manpower to manage one, and so use a combination of a VPN and a set of firewall rules that still quite a bit lowers the exposure, but without the extra effort.

Mistakes Leading to Leaving Cloud Servers Open

The Mistakes That Cause Leaving Cloud Servers Open: Even the safest development teams may have slip-ups from time to time. One of the most frequent is leaving staged, or test servers with relaxed firewall rules equivalent to those of the production environment – hackers don’t concern themselves with which environment they first land on. Another frequent error is reusing the same SSH key on several servers and clients, causing one hacked laptop to compromise all servers that key has access to.

Another common human error is not removing or changing access when someone leaves the team, so stale credentials remain valid and accessible. At last, putting trust in the strategy of “security through obscurity” – meaning one thinks that setting up the unusual port or hiding the hostname from the public is actually sufficient security – creates a wrong impression of security. This is mostly true; in reality, modern-day attackers scan all ports anyway, and there is no way to hide from them.

System Administrators Guide to Secure Remote Access 

Prohibit SSH password logins totally and depend exclusively on key-based authentication

  • Surely no one wants to type in the password every time; because of this, use only key-based authentication 
  • Deter the user from logging in as root by default and instead use the sudo command to do root tasks
  • A firewall or security group rule can provide great help with IP address-based restrictions on SSH logins 
  • For access that comes from untrusted sources or external networks, use a secure tunnel like a vpn or bastion host
  • Periodically change SSH keys and inspect access lists
  • Maintain records of login attempts and detect brute-force attacks as quickly as possible

Frequently Asked Questions

What is the principal means by which cloud servers suffer break-ins through remote access?

By far the biggest reason why this can happen is unauthorized password-based SSH logins that have been cracked by brute force. The scenario is most likely to develop where the administrator allows root login via password and leaves the default port open.

Sufficient security measures for the server via SSH keys: Do you think it is safe to rely only on key authentication? 

It is true that SSH keys drastically decrease the danger of a successful brute-force attack. However, if there is only key authentication on the server, there are still risks – the server administrator can always enable root login or disable the IP-based login restrictions. So it is recommended to always have these three in the server configuration: disabled root login, restricted access to known IPs, and rotating the keys regularly as the main components of meaningful protection. 

Is it really necessary to set up a separate VPN network while I am able to connect via SSH keys? 

A VPN gives extra security by first encrypting your computer traffic before it reaches your network, where the SSH connection will be used. This is mostly important when working on untrusted networks – like public wi-fi – where there is a threat of a potential hacker in your local network looking at your data.

Bastion host vs VPN as methods of accessing the server? 

The bastion host works by funneling SSH sessions from many users through a single, carefully monitored server point while the rest of the network (and mostly the servers) remains protected from the internet. At the same time, a vpn will fully encrypt the communication between the user and the corporate network or servers. The combination is very common among larger security teams as a part of the defense-in-depth principle. 

How often should SSH keys be rotated? 

The ideal period to change your SSH keys depends on the security practices of your organization, but generally a good practice is to change SSH keys between 90 and 180 days, or in the case that the user who had access with the key leaves or is no longer able to be contacted, such as when a team member leaves.

Why is only changing the port number for SSH enough to secure that port?

Changing the port reduces automated scanning noise in your logs but isn’t a real security control on its own — port scanners check all ports, so it should never replace key-based auth and firewall rules.

#Secure #Remote #Access #Cloud #ServerCloud,remote access">How to Secure Remote Access to Your Cloud Server in 2026

Protection against unauthorized remote logins to your cloud server is a matter of SSH key-based authentication, a strict security policy on the firewall, two-factor authentication, and a secure communication channel – no individual component will give adequate protection by itself. The major risk point in breaches is not the server but the open door to remote login. To patch that vulnerability, you need a series of countermeasures, not a magical setting.

Why Remote Server Access Is a Common Attack Vector

Every cloud server exposes at least one remote access point – usually SSH on port 22 – and that port is scanned constantly by bots looking for weak credentials. Password-based login is the most common way a system can be attacked by brute force, and it is quite common with a standard setup that the system is left in a state where an admin/user of that system – “root user” – can log in directly by guessing the user ID and the password combination. Add in shared team credentials, forgotten firewall rules from old projects, and staging servers left publicly reachable, and it’s clear why misconfigured remote access – not zero-day exploits – is behind most cloud server compromises. The fix is simple, though you’ll need to do some setup yourself instead of trusting the default setting.

How to lock down SSH access in the right way

The best way to secure remote access is through a series of small improvements rather than one major overhaul. The following is a real working method:

  1. Switch to SSH key authentication, then turn off password login completely in the same location: sshd_config. Keys are far harder to brute-force than passwords.
  2. Disable root login over SSH and require a non-root user with sudo privileges instead; this is a security advantage that even without any change, one key compromising would limit the impact.
  3. Change the default SSH port away from 22 to cut down on automated scanning noise (not a security measure on its own, but it reduces log clutter).
  4. Restrict access by IP using your firewall or security group, allowing SSH only from known office or VPN IP ranges rather than the entire internet.
  5. Add a VPN as a connection layer for anyone accessing servers from outside a trusted network – a VPN like Planet VPN’s free VPN service can encrypt the connection between a remote worker’s laptop and the server before SSH traffic ever leaves their device, which matters especially on public wi-fi or shared networks.

Every step you take closes the doors that the attacker may open slightly, and when you combine everything, you would have a door to a series of locked gates.

Why Do I Need a Bastion Host?

When it comes to teams working with many servers, deploying a bastion host (jump box) may be a clean and effective way to solve the long-term problem. With this method, you only expose SSH to the bastion, and the other servers accept it only when it’s from the bastion’s internal IP. This centralizes logging and makes auditing access far simpler.

Using a virtual private network (VPN) and a bastion host together is perfectly fine – and many solutions use both: a safe way to access the private network via a VPN, followed by use of a bastion host to restrict which servers can be accessed. Some teams may decide to forgo the bastion because they don’t have the manpower to manage one, and so use a combination of a VPN and a set of firewall rules that still quite a bit lowers the exposure, but without the extra effort.

Mistakes Leading to Leaving Cloud Servers Open

The Mistakes That Cause Leaving Cloud Servers Open: Even the safest development teams may have slip-ups from time to time. One of the most frequent is leaving staged, or test servers with relaxed firewall rules equivalent to those of the production environment – hackers don’t concern themselves with which environment they first land on. Another frequent error is reusing the same SSH key on several servers and clients, causing one hacked laptop to compromise all servers that key has access to.

Another common human error is not removing or changing access when someone leaves the team, so stale credentials remain valid and accessible. At last, putting trust in the strategy of “security through obscurity” – meaning one thinks that setting up the unusual port or hiding the hostname from the public is actually sufficient security – creates a wrong impression of security. This is mostly true; in reality, modern-day attackers scan all ports anyway, and there is no way to hide from them.

System Administrators Guide to Secure Remote Access 

Prohibit SSH password logins totally and depend exclusively on key-based authentication

  • Surely no one wants to type in the password every time; because of this, use only key-based authentication 
  • Deter the user from logging in as root by default and instead use the sudo command to do root tasks
  • A firewall or security group rule can provide great help with IP address-based restrictions on SSH logins 
  • For access that comes from untrusted sources or external networks, use a secure tunnel like a vpn or bastion host
  • Periodically change SSH keys and inspect access lists
  • Maintain records of login attempts and detect brute-force attacks as quickly as possible

Frequently Asked Questions

What is the principal means by which cloud servers suffer break-ins through remote access?

By far the biggest reason why this can happen is unauthorized password-based SSH logins that have been cracked by brute force. The scenario is most likely to develop where the administrator allows root login via password and leaves the default port open.

Sufficient security measures for the server via SSH keys: Do you think it is safe to rely only on key authentication? 

It is true that SSH keys drastically decrease the danger of a successful brute-force attack. However, if there is only key authentication on the server, there are still risks – the server administrator can always enable root login or disable the IP-based login restrictions. So it is recommended to always have these three in the server configuration: disabled root login, restricted access to known IPs, and rotating the keys regularly as the main components of meaningful protection. 

Is it really necessary to set up a separate VPN network while I am able to connect via SSH keys? 

A VPN gives extra security by first encrypting your computer traffic before it reaches your network, where the SSH connection will be used. This is mostly important when working on untrusted networks – like public wi-fi – where there is a threat of a potential hacker in your local network looking at your data.

Bastion host vs VPN as methods of accessing the server? 

The bastion host works by funneling SSH sessions from many users through a single, carefully monitored server point while the rest of the network (and mostly the servers) remains protected from the internet. At the same time, a vpn will fully encrypt the communication between the user and the corporate network or servers. The combination is very common among larger security teams as a part of the defense-in-depth principle. 

How often should SSH keys be rotated? 

The ideal period to change your SSH keys depends on the security practices of your organization, but generally a good practice is to change SSH keys between 90 and 180 days, or in the case that the user who had access with the key leaves or is no longer able to be contacted, such as when a team member leaves.

Why is only changing the port number for SSH enough to secure that port?

Changing the port reduces automated scanning noise in your logs but isn’t a real security control on its own — port scanners check all ports, so it should never replace key-based auth and firewall rules.

#Secure #Remote #Access #Cloud #ServerCloud,remote access

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