It’s the lack of noise you notice first. There’s no clatter of equipment, rumble of engines, or chatter of coworkers. Only the low hum of electronics. For an industrial space, this is eerily quiet, but it makes sense in a building where robots might outnumber people.
I’m at a warehouse — or customer fulfilment center (CFC) — operated by online grocery company Ocado in Luton, just outside London. You might not have heard of Ocado, but it may still have delivered your groceries. Its technology handles online orders for Kroger across 14 US states, Sobeys in Canada, and both Morrisons and its own delivery brand in the UK, with other clients across Europe and Asia.
The grocery business has tight margins, and online orders even more so, with stores having to front the added costs of picking, packing, and shipping orders. Ocado, which launched in 2000, has always been a proponent of using automation to cut those costs.
At the heart of it all is “the Grid.” Sprawling across most of the warehouse’s top floor, this crisscross of tracks allows a fleet of hundreds of blocky, bulky robots to whoosh around, carefully controlled by a central computer to avoid collisions, moving custom-built trays of bread, tins, ready meals, and more to wherever they need to be. It’s almost entirely automated — so much so that as I stand looking out from a maintenance walkway, I can’t see a single soul apart from the Ocado employees guiding me around that morning. Few humans are required to supervise the robots or work alongside them. Even tech support is handled remotely, by a team in Bulgaria. At one point, I see a robot’s cheery green LEDs turn amber, indicating a problem. It quickly halts, and sits there, flashing orange, for 30 seconds or so, then pings green and trundles happily on again, no in-person help required.
None of this is new. In fact, it’s not even the first time The Verge has seen it — back in 2018, we visited another CFC in the UK, when the Grid was cutting-edge. Now it’s old news; not set to be replaced, but in the midst of an upgrade that adds one crucial element: arms.
Let’s step back for a moment. The cuboid bots on the Grid don’t pack anyone’s shopping bags. Until recently, they’ve only been tasked with moving crates, grabbing a box of beans from the chute where it’s stored, and moving it to another chute, where it drops down alongside a human worker just in time for them to pack a couple of tins into someone’s shopping bag. Workers are expected to pack items in seconds, and the system works because it’s extraordinarily efficient. By the time an employee is ready to pack an item, it’s already at their side, and a display is telling them how many to pack, into which bags, in which crates. Even the order of their instructions is calibrated by the computer to minimize unnecessary movement that might slow them down. This is human work, but optimized to its limits.


But now there’s something new. Perched across the Grid, rearing high above their squat compatriots, are a new type of robot. These sit in place, islands in the constant whir of movement around them. But just like the people standing a floor below, they’re busy packing bags.
Dubbed On-Grid Robotic Pick (OGRP), each arm is fitted with a small suction cup on one end. Sixty-five of them sit on the Grid in Luton, with 500 of the original robots that bring crates to them, some with customer shopping bags to be filled, others with groceries ready to be packed, and the arms pick objects up and pack them into the bags. Each OGRP arm has a camera to help pick up groceries, but they’re not designed to recognize damaged goods, so they won’t spot broken eggs or bruised apples, giving humans at least some advantage.
In 2024, OGRP packed over 30 million orders with fewer than 100 arms installed, and by the end of this year Ocado expects to have almost 500 in place. James Matthews, Ocado’s deputy CEO, tells me that right now the arms are able to pack around 40 percent of Ocado’s groceries. The company expects to reach the 80 percent range, partly through the introduction of a range of new endpoint attachments to go along with the current suction cup, from a parallel gripper to a soft, handlike one. That’s not a decade away, either — that’s where they expect to be “in the next two or three years.”
Hitting 100 percent isn’t part of the plan. Ocado expects that some items just won’t be worth automating. Wine bottles and watermelons are too heavy for the current suction cup to handle, and a gripper might cause damage. Ocado is developing a dedicated attachment for wine bottles, because it processes a lot of them, but it’s leaving watermelons to the humans — developing a dedicated tool just for one item simply isn’t worth it.
But things can change. When The Verge visited Ocado all those years ago, we saw an early prototype of OGRP, long before it was ready to roll out. “Nothing stumps a robot quite like a bag of oranges,” we wrote at the time, highlighting the limits of the tech: the bags move unpredictably, there’s no easy point for a suction cup to grab, and too strong a grip leaves you with juice, not fruit. Ocado agreed that this was beyond their reach, but eight years on, Matthews tells me, the robots have figured it out for themselves. The AI models that underpin their programming (which Matthews calls “cousins” of the generative AI models grabbing headlines elsewhere) weren’t trained for bags of fruit, but after experimentation learned they could attach their suction cup to the right point on the label and lift the whole bag from there, unlocking a new skill for every robot across the range.

Ocado is looking at opportunities for automation almost everywhere in the warehouse. There are still workers unpacking incoming shipments of products and loading them into the crates on the Grid, but I’m quickly told the company is working on new automations for that. Others load heavy metal trollies onto the outgoing vans, but there’s a mobile robot in development for that job too. The safest of the lot might be the actual drivers — while Ocado invests in both Wayve and Oxa, two UK startups working on autonomous driving, Matthews doesn’t see deliveries becoming fully automated anytime soon. This is, after all, the one point in the process that’s customer-facing, and Matthews doesn’t sound too tempted by a future where customers are tasked with unloading delivery vans for themselves.
Delivery aside, Ocado is well suited to automation because its pursuit of efficiency has already made so many of its jobs simple, mechanical, and repetitive anyway. The more efficient and focused workers are, the easier it is to design a robot to take over for them. Plus, some of the jobs it’s replacing are grueling and difficult to staff at the best of times, like employees tasked with packing ice cream and other frozen food. “You just literally cannot find the people who want to come in and work in a freezer,” Matthews claims, making these jobs natural candidates to automate.
But Ocado also enjoys a certain amount of distance from the staff it replaces. It sells the technology inside its CFCs to clients, but doesn’t run day-to-day operations itself. Visit a Kroger CFC in the US, and it might be packed to the rafters with Ocado robots, but the human employees will all be paid by Kroger, not Ocado — and when layoffs come around, it’s not Ocado administering them. Ocado itself isn’t cutting jobs. In fact, it’s growing, Matthews tells me, opening more sites, expanding its R&D, and hiring more remote support workers.

Additional automation, and fewer human jobs, is clearly in the future for the grocery stores Ocado supports, though. But what exactly will that future look like? Eight years ago, the robotic arms were the promise of tomorrow, so what’s their equivalent now? “Efficiency” might be one answer. Ocado is working on lighter, cheaper, and more energy-efficient versions of its robots, including new 3D-printed Cartesian models that weigh a third of the originals. That has knock-on effects — lighter robots are less likely to cause damage or harm someone in a collision, so Ocado can reduce the size of the crash barriers around the Grid, making it more compact and more modular, easier to scale down to smaller sites.
But if you ask Matthews, the bigger changes will be harder to predict. The arms only made the jump from development project to working infrastructure when the AI models inside them made their own leap forward. The most important problems aren’t the physical ones, but the analytical ones, designing machines intelligent enough to work through the edge cases, to adapt to problems like a bent crate that won’t fit its rack, causing a jam. “It isn’t useful solving something 90 percent of the time,” Matthews says. “Because if 10 percent of the time you have to pay an expensive engineer to go and unjam it, you’re better off doing it manually.”
Those 10 percent problems are where Ocado and its clients still feel the need to keep people involved — but it’s not much of a gap for the machines to close.
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![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 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](https://techcrunch.com/wp-content/uploads/2026/08/DM9A2852.jpg?w=680)

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