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AI is forcing the data industry to consolidate — but that’s not the whole story | TechCrunch

AI is forcing the data industry to consolidate — but that’s not the whole story | TechCrunch

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The data industry is on the verge of a drastic transformation.

The market is consolidating. And if the deal flow in the past two months is any indicator — with Databricks buying Neon for $1 billion and Salesforce snapping up cloud management firm Informatica for $8 billion — momentum is building for more.

The acquired companies may range in size, age, and focus area within the data stack, but they all have one thing in common. These companies are being bought in hopes the acquired technology will be the missing piece needed to get enterprises to adopt AI.

On the surface level, this strategy makes sense.

The success of AI companies, and AI applications, is determined by access to quality underlying data. Without it, there simply isn’t value — a belief shared by enterprise VCs. In a TechCrunch survey conducted in December 2024, enterprise VCs said data quality was a key factor to make AI startups stand out and succeed. And while some of these companies involved in these deals aren’t startups, the sentiment still stands.

Gaurav Dhillon, the former co-founder and CEO of Informatica, and current chairman and CEO at data integration company SnapLogic, echoed this in a recent interview with TechCrunch.

“There is a complete reset in how data is managed and flows around the enterprise,” Dhillon said. “If people want to seize the AI imperative, they have to redo their data platforms in a very big way. And this is where I believe you’re seeing all these data acquisitions, because this is the foundation to have a sound AI strategy.”

But is this strategy of snapping up companies built before a post-ChatGPT world the way to increase enterprise AI adoption in today’s rapidly innovating market? That’s unclear. Dhillon has doubts too.

“Nobody was born in AI; that’s only three years old,” Dhillon said, referring to the current post-ChatGPT AI market. “For a larger company, to provide AI innovations to re-imagine the enterprise, the agentic enterprise in particular, it’s going to need a lot of retooling to make it happen.”

Fragmented data landscape

The data industry has grown into a sprawling and fragmented web over the past decade — which makes it ripe for consolidation. All it needed was a catalyst. From 2020 through 2024 alone, more than $300 billion was invested into data startups across more than 24,000 deals, according to PitchBook data.

The data industry wasn’t immune to the trends seen in other industries like SaaS where the venture swell of the last decade resulted in numerous startups getting funded by venture capitalists that only targeted one specific area or were in some cases built around a single feature.

The current industry standard of bundling together a bunch of different data management solutions, each with its own specific focus, doesn’t work when you want AI to crawl around your data to find answers or build applications.

It makes sense that larger companies are looking to snap up startups that can plug into and fill existing gaps in their data stack. A perfect example of this trend is Fivetran’s recent acquisition of Census in May — which yes, was done in the name of AI.

Fivetran helps companies move their data from a variety of sources into cloud databases. For the first 13 years of its business, it didn’t allow customers to move this data back out of said databases, which is exactly what Census offers. This means prior to this acquisition, Fivetran customers needed to work with a second company to create an end-to-end solution.

To be clear, this isn’t meant to cast shade on Fivetran. At the time of the deal, George Fraser, the co-founder and CEO of Fivetran, told TechCrunch that while moving data in and out of these warehouses seems like two sides of the same coin, it’s not that simple; the company even tried and abandoned an in-house solution to this problem.

“Technically speaking, if you look at the code underneath [these] services, they’re actually pretty different,” Fraser said at the time. “You have to solve a pretty different set of problems in order to do this.”

This situation helps illustrate how the data market has transformed in the last decade. For Sanjeev Mohan, a former Gartner analyst who now runs SanjMo, his own data trend advisory firm, these types of scenarios are a big driver of the current wave of consolidation.

“This consolidation is being driven by customers being fed up with a multitude of products that are incompatible,” Mohan said. “We live in a very interesting world where there are a lot of different data storage solutions, you can do open source, they can go to Kafka, but the one area where we have failed is metadata. Dozens of these products are capturing some metadata but to do their job, it’s an overlap.”

Good for startups

The broader market plays a role here too, Mohan said. Data startups are struggling to raise capital, Mohan said, and an exit is better than having to wind down or load up on debt. For the acquirers, adding features gives them better pricing leverage and an edge against their peers.

“If Salesforce or Google isn’t acquiring these companies, then their competitors likely are,” Derek Hernandez, a senior emerging tech analyst at PitchBook, told TechCrunch. “The best solutions are being acquired currently. Even if you have an award-winning solution, I don’t know that the outlook for staying private ultimately wins over going to a larger [acquirer].”

This trend brings big benefits to the startups getting acquired. The venture market is starving for exits and the current quiet period for IPOs doesn’t leave them a lot of opportunities. Getting acquired not only provides that exit, but in many cases gives these founding teams room to keep building.

Mohan agreed and added that many data startups are feeling the pains of the current market regarding exits and the slow recovery of venture funding.

“At this point in time, acquisition has been a much more favorable exit strategy for them,” Hernandez said. “So I think, kind of both sides are very incentivized to get to the finish line on these. And I think Informatica is a good example of that, where even with a bit of a haircut from where Salesforce was talking to them last year, it’s still, you know, was the best solution, according to their board.”

What happens next

But the doubt still remains if this acquisition strategy will achieve the buyers’ goals.

As Dhillon pointed out, the database companies being acquired weren’t necessarily built to easily work with the rapidly-changing AI market. Plus, if the company with the best data wins the AI world, will it make sense for data and AI companies to be separate entities?

“I think a lot of the value is in merging the major AI players with the data management companies,” Hernandez said. “I don’t know that a standalone data management company is particularly incentivized to remain so and, kind of like, play a third party between enterprises and AI solutions.”

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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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