The American economy is little more than a big bet on AI. Morgan Stanley investor Ruchir Sharma recently noted that money poured into AI investments now accounts for about 40% of the United States’ GDP growth in 2025, and AI companies are responsible for 80% of growth in American stocks. So how bad is it that the most recent major deal among AI giants, agreements that have driven up stock prices dramatically, look like a snake eating its own tail?
In recent months, Nvidia announced that it would invest $100 billion into OpenAI, OpenAI announced that it would pay $300 billion to Oracle for computing power, and Oracle announced it would buy $40 billion worth of chips from Nvidia. It doesn’t take a flow chart to get the feeling that these firms are just moving money around between each other. But surely that’s not happening…right?
It’s a little harder to get assurances of that than you might think.
Is it all round-tripping?
Many of these agreements are, on their face, mutually beneficial. If everything is on the level, while these deals might be circular, they should be moving everything forward. Rishi Jaluria, an analyst at RBC Capital Markets, told Gizmodo that deals like these could result in a “less capacity-constrained world,” which would allow for faster development of models that could produce higher returns on investment.
“The better models we have, the more we can realize a lot of these AI use cases that are on hold just because the technology isn’t powerful enough yet to handle it,” he said. “If that happens, and that can generate real [return on investment] for customers … that results in real cost savings, potentially new revenue generation opportunities, and that creates net benefits from a GDP perspective.”
So as long as we keep having AI breakthroughs and these companies figure out how to monetize their products, everything should be fine. On the off chance that doesn’t happen, though?
“If that doesn’t happen, if there is no real enterprise AI adoption, then it’s all round-tripping,” Jaluria said.
Round-tripping, generally speaking, refers to the unethical and typically illegal practice of making trades or transactions to artificially prop up a particular asset or company, making it look like it’s more valuable and in demand than it actually is. In this case, it would be tech companies that are trying to make it appear like they are more valuable than they actually are by announcing big deals with each other that move the stock price.
So what might suggest whether this money is actually accomplishing anything other than serving as hot air in a rapidly inflating bubble? Jaluria said he’s watching for faster developments of models, advancements in performance, and overall AI adoption. “If this leads to a step function change in the way enterprise is adopting and utilizing AI, that creates a benefit,” he said.
Whether that is happening currently or not is kind of in the eye of the beholder. OpenAI has certainly shown advancements in its technology. The release of its Sora 2 video generation model has unleashed a fresh hell upon the world, used to generate significant amounts of copyright violations and misinformation. But the latest version of the company’s flagship model, GPT-5, underwhelmed and failed to live up to expectations when it was released in August.
Adoption rates of the technology are also a bit of a Rorschach test. The company boasts that 10% of the world is using ChatGPT, and nearly 80% of the business world says that it’s looking into how to utilize the technology. But the early adopters aren’t finding much utility. According to a survey from the Massachusetts Institute of Technology, 95% of companies that have tried to integrate generative AI tools into their operations have produced zero return on investment.
Where these investments are generating a return is in the stock market. Which, frankly, does not quell concerns about these firms simply boosting one another’s bottom line.
Take Oracle, for example. Last month, the cloud provider had a rough quarter by all traditional indicators. It missed on both its revenue and earnings projections, and its net income was flat year-over-year. And yet, the stock price soared. The reason: the company’s plump list of remaining performance obligations—financial agreements that will provide revenue that have not yet been fulfilled. There, the company showed a massive amount of growth, a 359% increase from the year prior, with a projected $455 billion coming in.
That money is not real yet. Nor is the growth the company has promised, claiming that its Oracle Cloud Infrastructure revenue would grow from under $20 billion to nearly $150 billion before the start of the 2030s. But all of it was sufficient for investors to drive up Oracle’s share price enough to slingshot CEO Larry Ellison into the top spot on the world’s richest person list, briefly leapfrogging Elon Musk.
OpenAI is either the nexus point or the void at the center
Most of this promised revenue will come from OpenAI, which made a commitment to purchase $300 billion worth of computing power from the company over five years. The clock on that contract doesn’t start until 2027, but assuming it actually happens, it would be one of the largest cloud computing deals in history.
It’s also one of the most unlikely, just based on where the companies involved currently stand. In order to provide the compute that it has promised to OpenAI, Oracle will reportedly need to generate 4.5 gigawatts of power capacity, more than two Hoover Dams’ worth of power. On the other side of the deal, OpenAI will have to pay about $60 billion per year to fit the bill for the agreement. It currently generates about $10 billion in revenue, which, statistically speaking, is less than $60 billion.
You can see a similar circular shape to OpenAI’s recent deal with Nvidia rival AMD, too. The exact details of the agreement weren’t reported, but chipmaker AMD expects to generate tens of billions of dollars over the next half-decade as it sells its AI chips to OpenAI. As part of the agreement, OpenAI gets a swath of shares in AMD, with options to buy up to 10% of the company. Lucky for OpenAI, there’s really no better time to get your hands on some AMD shares than right before it announces a big AI-related deal. The company’s stock price surged by about 35% following the announcement.
With those two most recent deals on the books, OpenAI has agreed to more than $1 trillion worth of computing deals so far this year. That’s a lot for any company to spend, but it’s especially a lot for a still-private company that reports just $10 billion in projected revenue through 2025. Even by its most recent funding rounds, the company as a whole is currently valued at about $500 billion.
Most of those deals have contingencies attached. For instance, Nvidia’s investment in OpenAI isn’t actually $100 billion, but an initial $10 billion for one gigawatt of data center capacity with the potential for $100 billion if 10 gigawatts are ultimately achieved. But the stock prices and valuations certainly seem to treat these deals as if they are set in stone. And OpenAI seems to be operating that way, too. The company claims that it’ll more than 10x its revenue in the next few years, and projects it’ll hit $129 billion annually by 2029.
Conveyor belts of capital
That type of potentially inflated revenue figure is the kind of thing that makes some people think of the Dot Com bubble of the early 2000s, where we saw companies like Commerce One receive a $21 billion valuation despite barely having any revenue. But Peter Atwater, Adjunct Professor of Economics at William and Mary and President of consulting firm Financial Insyghts, sees a different reflection in the AI bubble: the housing market collapse.
“What we saw at the top of the mortgage market was all of these conveyor belts of capital, money flowing from one party to another party to another party. And what you started to see was that there were multiple points of relationship so that any participant in the system was then dependent on every other conveyor belt in the system working simultaneously to keep the system going,” he told Gizmodo. “In many ways, we’re seeing the same developing web of capital flows across the AI space.”
This creates some obvious problems. The circular deals that, in theory, are wheels moving the whole thing forward all have to keep turning. If any of them stop, the whole thing stops, because they are all so interconnected that no failure is truly isolated.
Atwater said that the types of major, metric-contingent deals that have been dominating headlines in the AI space aren’t all that different from some of what was happening in the mortgage industry back in 2007, where some of the financial commitments required mortgages to meet certain conditions.
“In the frenzy of a bubble, everyone overcommits. The purpose of overcommitting is to stake a claim in what you believe will be an intensely scarce commodity in the future. So you have buyers overcommit and you have sellers agreeing to overprovide as a result,” he explained. “What we find over and over is that commitments are among the first obligations to be cut off once conditions change, once confidence begins to fall.”
Right now, there’s a stomach for those commitments. That isn’t guaranteed to be there in the future if all of these promised returns on investment don’t materialize. Atwater said that the market requires credit markets being willing to continue to extend massive sums of money to cover the agreements made, equity markets that value these transactions at “an extraordinary multiple,” and suppliers capable of delivering the promised products. There’s no guarantee that all of those factors will hold.
The math is already pretty tricky. As tech commentator Ed Zitron has pointed out, major firms like Microsoft, Meta, Tesla, Amazon, and Google have invested about $560 billion in AI infrastructure over the last two years. They’ve brought in a combined $35 billion in AI-related revenue. OpenAI’s commitments are even bigger, with returns that are arguably even smaller.
The company’s development and expansion of its services will rely in no small part on massive data center projects, which will require the same amount of energy to operate as New York City and San Diego combined—energy that currently isn’t even available. And, once again, there is no guarantee that the end product, once all of that energy is spent and data centers are built, will actually generate revenue.
“Ultimately, if you do not have a consumer for the product, there will be no AI space because these companies can’t continue to do this for nothing. Listening to a lot of the calls in the last couple of weeks, there’s a clear open question as to how these companies are going to make money at this,” Atwater said.
For the moment, everyone is seeing green, and hope springs eternal. As long as that is the case, no one will ask where the revenue is coming from. “Right now, the AI sector is operating in a forever mindset. They are acting as if they have a very long period of time under which they can figure this out and make money,” Atwater said. “As long as confidence is high, this entire ecosystem can offer fantasy. When confidence falls, they’re going to be expected to deliver real-term performance in a very short time frame.”
Unfortunately, should that happen, it won’t just be these companies that bear the brunt of the failure. “You have to look at this as a larger ecosystem. To talk about AI today, it means we have to talk about the credit market, we have to talk about the credit market. Wall Street and AI are a single beast,” Atwater said, warning that a very small number of firms currently have a major grasp on the whole of the American economy.
Lots of investors are piling into the AI space, fearful of missing out on a market that seems like it can only go up. But few of them are looking at why those valuations and stock prices keep climbing, showing little curiosity as to what might happen if all of this money is just getting shifted around, artificially inflating the actual value of the companies they are betting on.
“‘Why?’,” Atwater said, “is the last question asked in a bull market.”
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![Inside the London hacker house taking a stand against founder burnout | TechCrunch
Six twentysomethings in East London have built what they say is the anti-San Francisco hacker house. The goal is a “holistic improvement in life,” rather than “12 weeks, Demo Day is coming,” Rowan Aldean, 26, explained.
Intrigued, I spent an afternoon visiting the house, meeting its residents, and doing a vibe check. I arrived after Aldean escorted me through the clean sidewalks of a new East London development to where the six-story building stood facing the water.
The house is called the London Island Founder House — or “Lift House” — and Aldean and his wife, Zahraa, 22, an upcoming pharmaceutical research PhD candidate, have lived there since May, just a few months after it officially launched in March. Aldean sold his previous company last year for millions, he said, and now runs an “applied AI” startup that helps companies learn how to deploy agents.
Like all hacker houses, Lift House is part startup workspace, part co-living space. The house is named after both its lift — that is, its elevator — and its mission to uplift tech founders, Aldean said. It’s one of the very few co-living hacker houses to exist in London (compared to San Francisco, where dozens — if not hundreds — are scattered around the city at any given time).
Lift House is a bet that U.K. founders can build successful companies without mimicking the over-the-top hustle culture of Silicon Valley.
Founders have described stories of San Francisco hacker houses illegally running in warehouses, throwing full-on galas, or setting up in a tent or espousing punishing, 72-hour sprints typical of the “996” work culture.
“I don’t expect the performative and over-the-top events will be a thing here,” Aldean said, and pointed to one of London’s most successful AI companies, DeepMind. “They’ve won Nobel prizes and built frontier innovation without any song and dance.”
Instead, Lift House is part of a trend called “Londonmaxxing,” in which founders attempt to optimize everything the London tech scene offers. The London ecosystem feels less showy and less startup bro-y than San Francisco, but its founders share similar ambitions: success, wealth, and market domination. London AI startups have raised billion so far in 2026, out of .7 billion raised by all London startups, according to Dealroom. Six companies have raised more than 0 million: Wayve, Superintelligence, ElevenLabs, Recursive, Ineffable Intelligence, and Isomorphic Labs, the latter three of which were founded by DeepMind alumni. The excitement from AI has boosted the morale of the U.K. tech scene, inspiring a new generation of founders, like those in the Lift House, to take big swings.
LIFT TourImage Credits:TechCrunch
Journaling vs. demo day
The timeline for living on Lift House is flexible — some people have stayed for a month; others intend to stay for at least six months. They buy their own groceries, Aldean said, although they often cook together and share ingredients. Cleaning is split among the group. Everyone declined to share information about the rent they pay.
The residents of Lift House aim for a balanced approach toward ambition, each one of them tells me — an almost unheard-of idea by San Francisco startup standards.
On Sundays, the group will journal together, a practice introduced by David Amor, 28, who runs a brain coaching and training company, helping founders and business leaders understand more about their brain and how it can help optimize business performance. The idea of journaling is to help everyone track how much time they spent in nature that week, how well they ate, and how much they moved their bodies.
“I’m eating healthier, working out more, and sleeping more,” Luke, 27, who runs an AI-marketing company, said about living in the house. “I always make sure to have lunch now, which is something that is simple, but I wasn’t doing before I lived here.” (Luke asked that his last name be withheld.) Tuesdays evenings are for volleyball, where the founders play on the house team in a local league.
After dinner on other evenings, Wan Ying L, 25, who just left an AI startup and is working on a new idea, might play the piano in the living room. Sometimes the group plays Catan or visits art exhibitions together.
Presence Plumb, 25, is a tech strategist. She likes to host rooftop dinner parties, serving dishes that reflect the different nationalities in the house — from Iraqi to Spanish — while invited founders, researchers, investors, and operators chat about tech trends and investments.
“It’s a bit calmer, balanced, authentic in a way,” she said of people in the London ecosystem. “They don’t want too much of that only startup tech bro vibe. They want a bit of balance.”
Each founder follows their own schedules for a typical workday. Amor, for example, is up by 8 a.m. and gives himself exactly 30 seconds after waking up before jumping into his morning work. “I have a clear objective of ‘this is what I want to do in the first half of the day, when there’s no distractions.’” After his morning work routine, he takes a cold shower, “because it increases your dopamine by 250% and that gives me that motivation, that spark,” he said.
Wan playing the pianoImage Credits:TechCrunch
Luke, meanwhile, is up at around 8:30. His co-founder, Varun, 27 (who asked that his last name be withheld), typically travels to the Lift House to co-work, and the duo starts work at around 9 a.m. with a team call.
Aldean rarely wakes before 10 a.m. unless something big is happening, like a “crazy angel [investor] call,” he said. When asked what makes this house uniquely British rather than a wellness-focused Silicon Valley founder house, Aldean joked: “Well, we drink tea together like Brits, and in SF folks just drink filtered coffee.” More seriously, he spoke of how British founders face a different kind of pressure than those in the U.S. They must navigate a cultural aversion to risk, an inclination toward humility, and a shame associated with failure. Instead of forgoing sleep for hustle and grind, they deal with what they call the “tall poppy syndrome,” when the media builds one up only to ruthlessly tear them down should they become too successful, investors and founders say. It makes some founders in the ecosystem wary of displaying too many wins.
Still, Luke said London is a strong choice for an early-stage founder: There’s a good network, ample early capital opportunities, and an option for a life outside of tech. In many ways, it is much more like New York culturally for founders than in San Francisco.
“London is so diverse that if you look properly enough, you’ll always find something fun to get involved with,” Amor added, “whether that’s a founder-run club, wellness events, [or going] to jazz nights.”
Luke and Varun write marketing terms on the whiteboard. They stand for top of funnel (TOFU), middle of funnel (MOFU), and bottom of funnel (BOFU).Image Credits:TechCrunch
Luke and Varun largely avoided venture capital funding by taking advantage of the U.K. government’s SEIS/EIS, which is supposed to help attract more angel investments into local startups. “There’s people who will pay basically the same rate of tax if they give us the money versus if they pay income tax,” Luke explained as another reason he liked starting out in London.
Aldean also feels the London ecosystem is less cutthroat than the Valley. He recalls his days living in a hacker house in the Bay — everyone’s desk had to face the wall, and it was heads-down, product-building. He felt the ecosystem, at times, was too willing to gossip, which is apparently done quite differently in the U.K.
“There’s nothing like ‘oh my god did you hear that the CTO just, like, did this,’” Aldean said. “It’s like you’re always worried,” he said, that someone would spread negative stories, especially if it benefited them.
Aldean also thinks London startups, more than Silicon Valley ones, sell into slow-moving large corporations rather than to each other, meaning one could build without having to kiss up or posture to get their peers to like them.
To the selling point, Varun and Luke mentioned another difference between the U.S. and U.K. ecosystem. “It’s a relatively fleeting market,” Varun said of the U.S. “You get quick wins. Here, it’s hard to close a customer, but if they close, they stay with you longer.”
Coming to America
Eventually, though, the road for many U.K. startups goes straight to the U.S.
In the U.K., founders have access to affordable top talent from universities like Oxbridge and a time zone that makes it easier to work with the rest of Europe, the Middle East, Asia, and parts of North America. In the U.S., however, they have access to the world’s largest economy and, most importantly, a lot of investors willing to write large checks, from pre-seed to growth stages.
“It’s almost like a factory line in a way,” Varun said. “You start here, and then you expand there or vice versa.”
American investors are also playing a role in luring British talent away from the country. I told the Lift House residents about one startup founder who said a top investor wouldn’t even back the company unless she relocated to the U.S. She ended up doing so, though decided to keep her family based in the U.K. to raise her children.
“We had an investor in Miami who said the same thing,” Luke said of an investor trying to get him and Varun to move to the U.S. “It’s quite a common practice.” He and Varun have already begun their U.S. expansion, and despite loving London, the duo hasn’t ruled out moving to the U.S. to be closer to their customers.
David, who has a brain coaching startup, is the one who introduced journaling into the household. Image Credits:TechCrunch
That’s the tension bubbling beneath not just the U.K.’s tech ecosystem but most of Europe’s. “I work with a lot of people trying to support the European ecosystem more,” Plumb said.
Yet, founders “talk about London; everyone is bullish on the country until they get the opportunity to leave,” Aldean added.
The Lift House lease has about a year left, and there is sentiment in the house to keep it going for as long as they can. After all, there aren’t too many in London, though the city sees many short-term gatherings, like the Solana Hacker House meet-up series. Some of the more public co-living hacker houses are part of a global chain, like the San Francisco-based network The Residency, which expanded into London last year, and BaseJump, which is announcing a London version of its hacker house program soon.
In 2024, two founders tried the opposite version of the Lift House called “The London Founder House,” which Sifted covered under the headline “The people here don’t want work-life balance.” That home is noted as London’s first-ever hacker house, and though it wound down last year, it left an influence through its concept, events, and connected players around the ecosystem. To even be considered for the London Founder House, one had to have raised at least half a million dollars.
For Lift House, prospective residents need to show a hobby outside their companies and an interest in fitness. It’s the same pitch many in the Londonmaxxing ecosystem are using to keep people from leaving: That here one can have it all.
“The culture is to build something that lasts,” Aldean said, “not necessarily burn out chasing a flash.”
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.#London #hacker #house #stand #founder #burnout #TechCrunchLondon,UK](https://techcrunch.com/wp-content/uploads/2026/07/LIFT-tour-2.jpg?w=680 "Inside the London hacker house taking a stand against founder burnout | TechCrunch
Six twentysomethings in East London have built what they say is the anti-San Francisco hacker house. The goal is a “holistic improvement in life,” rather than “12 weeks, Demo Day is coming,” Rowan Aldean, 26, explained.
Intrigued, I spent an afternoon visiting the house, meeting its residents, and doing a vibe check. I arrived after Aldean escorted me through the clean sidewalks of a new East London development to where the six-story building stood facing the water.
The house is called the London Island Founder House — or “Lift House” — and Aldean and his wife, Zahraa, 22, an upcoming pharmaceutical research PhD candidate, have lived there since May, just a few months after it officially launched in March. Aldean sold his previous company last year for millions, he said, and now runs an “applied AI” startup that helps companies learn how to deploy agents.
Like all hacker houses, Lift House is part startup workspace, part co-living space. The house is named after both its lift — that is, its elevator — and its mission to uplift tech founders, Aldean said. It’s one of the very few co-living hacker houses to exist in London (compared to San Francisco, where dozens — if not hundreds — are scattered around the city at any given time).
Lift House is a bet that U.K. founders can build successful companies without mimicking the over-the-top hustle culture of Silicon Valley.
Founders have described stories of San Francisco hacker houses illegally running in warehouses, throwing full-on galas, or setting up in a tent or espousing punishing, 72-hour sprints typical of the “996” work culture.
“I don’t expect the performative and over-the-top events will be a thing here,” Aldean said, and pointed to one of London’s most successful AI companies, DeepMind. “They’ve won Nobel prizes and built frontier innovation without any song and dance.”
Instead, Lift House is part of a trend called “Londonmaxxing,” in which founders attempt to optimize everything the London tech scene offers. The London ecosystem feels less showy and less startup bro-y than San Francisco, but its founders share similar ambitions: success, wealth, and market domination. London AI startups have raised billion so far in 2026, out of .7 billion raised by all London startups, according to Dealroom. Six companies have raised more than 0 million: Wayve, Superintelligence, ElevenLabs, Recursive, Ineffable Intelligence, and Isomorphic Labs, the latter three of which were founded by DeepMind alumni. The excitement from AI has boosted the morale of the U.K. tech scene, inspiring a new generation of founders, like those in the Lift House, to take big swings.
LIFT TourImage Credits:TechCrunch
Journaling vs. demo day
The timeline for living on Lift House is flexible — some people have stayed for a month; others intend to stay for at least six months. They buy their own groceries, Aldean said, although they often cook together and share ingredients. Cleaning is split among the group. Everyone declined to share information about the rent they pay.
The residents of Lift House aim for a balanced approach toward ambition, each one of them tells me — an almost unheard-of idea by San Francisco startup standards.
On Sundays, the group will journal together, a practice introduced by David Amor, 28, who runs a brain coaching and training company, helping founders and business leaders understand more about their brain and how it can help optimize business performance. The idea of journaling is to help everyone track how much time they spent in nature that week, how well they ate, and how much they moved their bodies.
“I’m eating healthier, working out more, and sleeping more,” Luke, 27, who runs an AI-marketing company, said about living in the house. “I always make sure to have lunch now, which is something that is simple, but I wasn’t doing before I lived here.” (Luke asked that his last name be withheld.) Tuesdays evenings are for volleyball, where the founders play on the house team in a local league.
After dinner on other evenings, Wan Ying L, 25, who just left an AI startup and is working on a new idea, might play the piano in the living room. Sometimes the group plays Catan or visits art exhibitions together.
Presence Plumb, 25, is a tech strategist. She likes to host rooftop dinner parties, serving dishes that reflect the different nationalities in the house — from Iraqi to Spanish — while invited founders, researchers, investors, and operators chat about tech trends and investments.
“It’s a bit calmer, balanced, authentic in a way,” she said of people in the London ecosystem. “They don’t want too much of that only startup tech bro vibe. They want a bit of balance.”
Each founder follows their own schedules for a typical workday. Amor, for example, is up by 8 a.m. and gives himself exactly 30 seconds after waking up before jumping into his morning work. “I have a clear objective of ‘this is what I want to do in the first half of the day, when there’s no distractions.’” After his morning work routine, he takes a cold shower, “because it increases your dopamine by 250% and that gives me that motivation, that spark,” he said.
Wan playing the pianoImage Credits:TechCrunch
Luke, meanwhile, is up at around 8:30. His co-founder, Varun, 27 (who asked that his last name be withheld), typically travels to the Lift House to co-work, and the duo starts work at around 9 a.m. with a team call.
Aldean rarely wakes before 10 a.m. unless something big is happening, like a “crazy angel [investor] call,” he said. When asked what makes this house uniquely British rather than a wellness-focused Silicon Valley founder house, Aldean joked: “Well, we drink tea together like Brits, and in SF folks just drink filtered coffee.” More seriously, he spoke of how British founders face a different kind of pressure than those in the U.S. They must navigate a cultural aversion to risk, an inclination toward humility, and a shame associated with failure. Instead of forgoing sleep for hustle and grind, they deal with what they call the “tall poppy syndrome,” when the media builds one up only to ruthlessly tear them down should they become too successful, investors and founders say. It makes some founders in the ecosystem wary of displaying too many wins.
Still, Luke said London is a strong choice for an early-stage founder: There’s a good network, ample early capital opportunities, and an option for a life outside of tech. In many ways, it is much more like New York culturally for founders than in San Francisco.
“London is so diverse that if you look properly enough, you’ll always find something fun to get involved with,” Amor added, “whether that’s a founder-run club, wellness events, [or going] to jazz nights.”
Luke and Varun write marketing terms on the whiteboard. They stand for top of funnel (TOFU), middle of funnel (MOFU), and bottom of funnel (BOFU).Image Credits:TechCrunch
Luke and Varun largely avoided venture capital funding by taking advantage of the U.K. government’s SEIS/EIS, which is supposed to help attract more angel investments into local startups. “There’s people who will pay basically the same rate of tax if they give us the money versus if they pay income tax,” Luke explained as another reason he liked starting out in London.
Aldean also feels the London ecosystem is less cutthroat than the Valley. He recalls his days living in a hacker house in the Bay — everyone’s desk had to face the wall, and it was heads-down, product-building. He felt the ecosystem, at times, was too willing to gossip, which is apparently done quite differently in the U.K.
“There’s nothing like ‘oh my god did you hear that the CTO just, like, did this,’” Aldean said. “It’s like you’re always worried,” he said, that someone would spread negative stories, especially if it benefited them.
Aldean also thinks London startups, more than Silicon Valley ones, sell into slow-moving large corporations rather than to each other, meaning one could build without having to kiss up or posture to get their peers to like them.
To the selling point, Varun and Luke mentioned another difference between the U.S. and U.K. ecosystem. “It’s a relatively fleeting market,” Varun said of the U.S. “You get quick wins. Here, it’s hard to close a customer, but if they close, they stay with you longer.”
Coming to America
Eventually, though, the road for many U.K. startups goes straight to the U.S.
In the U.K., founders have access to affordable top talent from universities like Oxbridge and a time zone that makes it easier to work with the rest of Europe, the Middle East, Asia, and parts of North America. In the U.S., however, they have access to the world’s largest economy and, most importantly, a lot of investors willing to write large checks, from pre-seed to growth stages.
“It’s almost like a factory line in a way,” Varun said. “You start here, and then you expand there or vice versa.”
American investors are also playing a role in luring British talent away from the country. I told the Lift House residents about one startup founder who said a top investor wouldn’t even back the company unless she relocated to the U.S. She ended up doing so, though decided to keep her family based in the U.K. to raise her children.
“We had an investor in Miami who said the same thing,” Luke said of an investor trying to get him and Varun to move to the U.S. “It’s quite a common practice.” He and Varun have already begun their U.S. expansion, and despite loving London, the duo hasn’t ruled out moving to the U.S. to be closer to their customers.
David, who has a brain coaching startup, is the one who introduced journaling into the household. Image Credits:TechCrunch
That’s the tension bubbling beneath not just the U.K.’s tech ecosystem but most of Europe’s. “I work with a lot of people trying to support the European ecosystem more,” Plumb said.
Yet, founders “talk about London; everyone is bullish on the country until they get the opportunity to leave,” Aldean added.
The Lift House lease has about a year left, and there is sentiment in the house to keep it going for as long as they can. After all, there aren’t too many in London, though the city sees many short-term gatherings, like the Solana Hacker House meet-up series. Some of the more public co-living hacker houses are part of a global chain, like the San Francisco-based network The Residency, which expanded into London last year, and BaseJump, which is announcing a London version of its hacker house program soon.
In 2024, two founders tried the opposite version of the Lift House called “The London Founder House,” which Sifted covered under the headline “The people here don’t want work-life balance.” That home is noted as London’s first-ever hacker house, and though it wound down last year, it left an influence through its concept, events, and connected players around the ecosystem. To even be considered for the London Founder House, one had to have raised at least half a million dollars.
For Lift House, prospective residents need to show a hobby outside their companies and an interest in fitness. It’s the same pitch many in the Londonmaxxing ecosystem are using to keep people from leaving: That here one can have it all.
“The culture is to build something that lasts,” Aldean said, “not necessarily burn out chasing a flash.”
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.#London #hacker #house #stand #founder #burnout #TechCrunchLondon,UK")
![Inside the London hacker house taking a stand against founder burnout | TechCrunch
Six twentysomethings in East London have built what they say is the anti-San Francisco hacker house. The goal is a “holistic improvement in life,” rather than “12 weeks, Demo Day is coming,” Rowan Aldean, 26, explained.
Intrigued, I spent an afternoon visiting the house, meeting its residents, and doing a vibe check. I arrived after Aldean escorted me through the clean sidewalks of a new East London development to where the six-story building stood facing the water.
The house is called the London Island Founder House — or “Lift House” — and Aldean and his wife, Zahraa, 22, an upcoming pharmaceutical research PhD candidate, have lived there since May, just a few months after it officially launched in March. Aldean sold his previous company last year for millions, he said, and now runs an “applied AI” startup that helps companies learn how to deploy agents.
Like all hacker houses, Lift House is part startup workspace, part co-living space. The house is named after both its lift — that is, its elevator — and its mission to uplift tech founders, Aldean said. It’s one of the very few co-living hacker houses to exist in London (compared to San Francisco, where dozens — if not hundreds — are scattered around the city at any given time).
Lift House is a bet that U.K. founders can build successful companies without mimicking the over-the-top hustle culture of Silicon Valley.
Founders have described stories of San Francisco hacker houses illegally running in warehouses, throwing full-on galas, or setting up in a tent or espousing punishing, 72-hour sprints typical of the “996” work culture.
“I don’t expect the performative and over-the-top events will be a thing here,” Aldean said, and pointed to one of London’s most successful AI companies, DeepMind. “They’ve won Nobel prizes and built frontier innovation without any song and dance.”
Instead, Lift House is part of a trend called “Londonmaxxing,” in which founders attempt to optimize everything the London tech scene offers. The London ecosystem feels less showy and less startup bro-y than San Francisco, but its founders share similar ambitions: success, wealth, and market domination. London AI startups have raised billion so far in 2026, out of .7 billion raised by all London startups, according to Dealroom. Six companies have raised more than 0 million: Wayve, Superintelligence, ElevenLabs, Recursive, Ineffable Intelligence, and Isomorphic Labs, the latter three of which were founded by DeepMind alumni. The excitement from AI has boosted the morale of the U.K. tech scene, inspiring a new generation of founders, like those in the Lift House, to take big swings.
LIFT TourImage Credits:TechCrunch
Journaling vs. demo day
The timeline for living on Lift House is flexible — some people have stayed for a month; others intend to stay for at least six months. They buy their own groceries, Aldean said, although they often cook together and share ingredients. Cleaning is split among the group. Everyone declined to share information about the rent they pay.
The residents of Lift House aim for a balanced approach toward ambition, each one of them tells me — an almost unheard-of idea by San Francisco startup standards.
On Sundays, the group will journal together, a practice introduced by David Amor, 28, who runs a brain coaching and training company, helping founders and business leaders understand more about their brain and how it can help optimize business performance. The idea of journaling is to help everyone track how much time they spent in nature that week, how well they ate, and how much they moved their bodies.
“I’m eating healthier, working out more, and sleeping more,” Luke, 27, who runs an AI-marketing company, said about living in the house. “I always make sure to have lunch now, which is something that is simple, but I wasn’t doing before I lived here.” (Luke asked that his last name be withheld.) Tuesdays evenings are for volleyball, where the founders play on the house team in a local league.
After dinner on other evenings, Wan Ying L, 25, who just left an AI startup and is working on a new idea, might play the piano in the living room. Sometimes the group plays Catan or visits art exhibitions together.
Presence Plumb, 25, is a tech strategist. She likes to host rooftop dinner parties, serving dishes that reflect the different nationalities in the house — from Iraqi to Spanish — while invited founders, researchers, investors, and operators chat about tech trends and investments.
“It’s a bit calmer, balanced, authentic in a way,” she said of people in the London ecosystem. “They don’t want too much of that only startup tech bro vibe. They want a bit of balance.”
Each founder follows their own schedules for a typical workday. Amor, for example, is up by 8 a.m. and gives himself exactly 30 seconds after waking up before jumping into his morning work. “I have a clear objective of ‘this is what I want to do in the first half of the day, when there’s no distractions.’” After his morning work routine, he takes a cold shower, “because it increases your dopamine by 250% and that gives me that motivation, that spark,” he said.
Wan playing the pianoImage Credits:TechCrunch
Luke, meanwhile, is up at around 8:30. His co-founder, Varun, 27 (who asked that his last name be withheld), typically travels to the Lift House to co-work, and the duo starts work at around 9 a.m. with a team call.
Aldean rarely wakes before 10 a.m. unless something big is happening, like a “crazy angel [investor] call,” he said. When asked what makes this house uniquely British rather than a wellness-focused Silicon Valley founder house, Aldean joked: “Well, we drink tea together like Brits, and in SF folks just drink filtered coffee.” More seriously, he spoke of how British founders face a different kind of pressure than those in the U.S. They must navigate a cultural aversion to risk, an inclination toward humility, and a shame associated with failure. Instead of forgoing sleep for hustle and grind, they deal with what they call the “tall poppy syndrome,” when the media builds one up only to ruthlessly tear them down should they become too successful, investors and founders say. It makes some founders in the ecosystem wary of displaying too many wins.
Still, Luke said London is a strong choice for an early-stage founder: There’s a good network, ample early capital opportunities, and an option for a life outside of tech. In many ways, it is much more like New York culturally for founders than in San Francisco.
“London is so diverse that if you look properly enough, you’ll always find something fun to get involved with,” Amor added, “whether that’s a founder-run club, wellness events, [or going] to jazz nights.”
Luke and Varun write marketing terms on the whiteboard. They stand for top of funnel (TOFU), middle of funnel (MOFU), and bottom of funnel (BOFU).Image Credits:TechCrunch
Luke and Varun largely avoided venture capital funding by taking advantage of the U.K. government’s SEIS/EIS, which is supposed to help attract more angel investments into local startups. “There’s people who will pay basically the same rate of tax if they give us the money versus if they pay income tax,” Luke explained as another reason he liked starting out in London.
Aldean also feels the London ecosystem is less cutthroat than the Valley. He recalls his days living in a hacker house in the Bay — everyone’s desk had to face the wall, and it was heads-down, product-building. He felt the ecosystem, at times, was too willing to gossip, which is apparently done quite differently in the U.K.
“There’s nothing like ‘oh my god did you hear that the CTO just, like, did this,’” Aldean said. “It’s like you’re always worried,” he said, that someone would spread negative stories, especially if it benefited them.
Aldean also thinks London startups, more than Silicon Valley ones, sell into slow-moving large corporations rather than to each other, meaning one could build without having to kiss up or posture to get their peers to like them.
To the selling point, Varun and Luke mentioned another difference between the U.S. and U.K. ecosystem. “It’s a relatively fleeting market,” Varun said of the U.S. “You get quick wins. Here, it’s hard to close a customer, but if they close, they stay with you longer.”
Coming to America
Eventually, though, the road for many U.K. startups goes straight to the U.S.
In the U.K., founders have access to affordable top talent from universities like Oxbridge and a time zone that makes it easier to work with the rest of Europe, the Middle East, Asia, and parts of North America. In the U.S., however, they have access to the world’s largest economy and, most importantly, a lot of investors willing to write large checks, from pre-seed to growth stages.
“It’s almost like a factory line in a way,” Varun said. “You start here, and then you expand there or vice versa.”
American investors are also playing a role in luring British talent away from the country. I told the Lift House residents about one startup founder who said a top investor wouldn’t even back the company unless she relocated to the U.S. She ended up doing so, though decided to keep her family based in the U.K. to raise her children.
“We had an investor in Miami who said the same thing,” Luke said of an investor trying to get him and Varun to move to the U.S. “It’s quite a common practice.” He and Varun have already begun their U.S. expansion, and despite loving London, the duo hasn’t ruled out moving to the U.S. to be closer to their customers.
David, who has a brain coaching startup, is the one who introduced journaling into the household. Image Credits:TechCrunch
That’s the tension bubbling beneath not just the U.K.’s tech ecosystem but most of Europe’s. “I work with a lot of people trying to support the European ecosystem more,” Plumb said.
Yet, founders “talk about London; everyone is bullish on the country until they get the opportunity to leave,” Aldean added.
The Lift House lease has about a year left, and there is sentiment in the house to keep it going for as long as they can. After all, there aren’t too many in London, though the city sees many short-term gatherings, like the Solana Hacker House meet-up series. Some of the more public co-living hacker houses are part of a global chain, like the San Francisco-based network The Residency, which expanded into London last year, and BaseJump, which is announcing a London version of its hacker house program soon.
In 2024, two founders tried the opposite version of the Lift House called “The London Founder House,” which Sifted covered under the headline “The people here don’t want work-life balance.” That home is noted as London’s first-ever hacker house, and though it wound down last year, it left an influence through its concept, events, and connected players around the ecosystem. To even be considered for the London Founder House, one had to have raised at least half a million dollars.
For Lift House, prospective residents need to show a hobby outside their companies and an interest in fitness. It’s the same pitch many in the Londonmaxxing ecosystem are using to keep people from leaving: That here one can have it all.
“The culture is to build something that lasts,” Aldean said, “not necessarily burn out chasing a flash.”
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.#London #hacker #house #stand #founder #burnout #TechCrunchLondon,UK](https://i3.wp.com/techcrunch.com/wp-content/uploads/2026/07/LIFT-tour-2.jpg?w=680&ssl=1 "Inside the London hacker house taking a stand against founder burnout | TechCrunch
Six twentysomethings in East London have built what they say is the anti-San Francisco hacker house. The goal is a “holistic improvement in life,” rather than “12 weeks, Demo Day is coming,” Rowan Aldean, 26, explained.
Intrigued, I spent an afternoon visiting the house, meeting its residents, and doing a vibe check. I arrived after Aldean escorted me through the clean sidewalks of a new East London development to where the six-story building stood facing the water.
The house is called the London Island Founder House — or “Lift House” — and Aldean and his wife, Zahraa, 22, an upcoming pharmaceutical research PhD candidate, have lived there since May, just a few months after it officially launched in March. Aldean sold his previous company last year for millions, he said, and now runs an “applied AI” startup that helps companies learn how to deploy agents.
Like all hacker houses, Lift House is part startup workspace, part co-living space. The house is named after both its lift — that is, its elevator — and its mission to uplift tech founders, Aldean said. It’s one of the very few co-living hacker houses to exist in London (compared to San Francisco, where dozens — if not hundreds — are scattered around the city at any given time).
Lift House is a bet that U.K. founders can build successful companies without mimicking the over-the-top hustle culture of Silicon Valley.
Founders have described stories of San Francisco hacker houses illegally running in warehouses, throwing full-on galas, or setting up in a tent or espousing punishing, 72-hour sprints typical of the “996” work culture.
“I don’t expect the performative and over-the-top events will be a thing here,” Aldean said, and pointed to one of London’s most successful AI companies, DeepMind. “They’ve won Nobel prizes and built frontier innovation without any song and dance.”
Instead, Lift House is part of a trend called “Londonmaxxing,” in which founders attempt to optimize everything the London tech scene offers. The London ecosystem feels less showy and less startup bro-y than San Francisco, but its founders share similar ambitions: success, wealth, and market domination. London AI startups have raised billion so far in 2026, out of .7 billion raised by all London startups, according to Dealroom. Six companies have raised more than 0 million: Wayve, Superintelligence, ElevenLabs, Recursive, Ineffable Intelligence, and Isomorphic Labs, the latter three of which were founded by DeepMind alumni. The excitement from AI has boosted the morale of the U.K. tech scene, inspiring a new generation of founders, like those in the Lift House, to take big swings.
LIFT TourImage Credits:TechCrunch
Journaling vs. demo day
The timeline for living on Lift House is flexible — some people have stayed for a month; others intend to stay for at least six months. They buy their own groceries, Aldean said, although they often cook together and share ingredients. Cleaning is split among the group. Everyone declined to share information about the rent they pay.
The residents of Lift House aim for a balanced approach toward ambition, each one of them tells me — an almost unheard-of idea by San Francisco startup standards.
On Sundays, the group will journal together, a practice introduced by David Amor, 28, who runs a brain coaching and training company, helping founders and business leaders understand more about their brain and how it can help optimize business performance. The idea of journaling is to help everyone track how much time they spent in nature that week, how well they ate, and how much they moved their bodies.
“I’m eating healthier, working out more, and sleeping more,” Luke, 27, who runs an AI-marketing company, said about living in the house. “I always make sure to have lunch now, which is something that is simple, but I wasn’t doing before I lived here.” (Luke asked that his last name be withheld.) Tuesdays evenings are for volleyball, where the founders play on the house team in a local league.
After dinner on other evenings, Wan Ying L, 25, who just left an AI startup and is working on a new idea, might play the piano in the living room. Sometimes the group plays Catan or visits art exhibitions together.
Presence Plumb, 25, is a tech strategist. She likes to host rooftop dinner parties, serving dishes that reflect the different nationalities in the house — from Iraqi to Spanish — while invited founders, researchers, investors, and operators chat about tech trends and investments.
“It’s a bit calmer, balanced, authentic in a way,” she said of people in the London ecosystem. “They don’t want too much of that only startup tech bro vibe. They want a bit of balance.”
Each founder follows their own schedules for a typical workday. Amor, for example, is up by 8 a.m. and gives himself exactly 30 seconds after waking up before jumping into his morning work. “I have a clear objective of ‘this is what I want to do in the first half of the day, when there’s no distractions.’” After his morning work routine, he takes a cold shower, “because it increases your dopamine by 250% and that gives me that motivation, that spark,” he said.
Wan playing the pianoImage Credits:TechCrunch
Luke, meanwhile, is up at around 8:30. His co-founder, Varun, 27 (who asked that his last name be withheld), typically travels to the Lift House to co-work, and the duo starts work at around 9 a.m. with a team call.
Aldean rarely wakes before 10 a.m. unless something big is happening, like a “crazy angel [investor] call,” he said. When asked what makes this house uniquely British rather than a wellness-focused Silicon Valley founder house, Aldean joked: “Well, we drink tea together like Brits, and in SF folks just drink filtered coffee.” More seriously, he spoke of how British founders face a different kind of pressure than those in the U.S. They must navigate a cultural aversion to risk, an inclination toward humility, and a shame associated with failure. Instead of forgoing sleep for hustle and grind, they deal with what they call the “tall poppy syndrome,” when the media builds one up only to ruthlessly tear them down should they become too successful, investors and founders say. It makes some founders in the ecosystem wary of displaying too many wins.
Still, Luke said London is a strong choice for an early-stage founder: There’s a good network, ample early capital opportunities, and an option for a life outside of tech. In many ways, it is much more like New York culturally for founders than in San Francisco.
“London is so diverse that if you look properly enough, you’ll always find something fun to get involved with,” Amor added, “whether that’s a founder-run club, wellness events, [or going] to jazz nights.”
Luke and Varun write marketing terms on the whiteboard. They stand for top of funnel (TOFU), middle of funnel (MOFU), and bottom of funnel (BOFU).Image Credits:TechCrunch
Luke and Varun largely avoided venture capital funding by taking advantage of the U.K. government’s SEIS/EIS, which is supposed to help attract more angel investments into local startups. “There’s people who will pay basically the same rate of tax if they give us the money versus if they pay income tax,” Luke explained as another reason he liked starting out in London.
Aldean also feels the London ecosystem is less cutthroat than the Valley. He recalls his days living in a hacker house in the Bay — everyone’s desk had to face the wall, and it was heads-down, product-building. He felt the ecosystem, at times, was too willing to gossip, which is apparently done quite differently in the U.K.
“There’s nothing like ‘oh my god did you hear that the CTO just, like, did this,’” Aldean said. “It’s like you’re always worried,” he said, that someone would spread negative stories, especially if it benefited them.
Aldean also thinks London startups, more than Silicon Valley ones, sell into slow-moving large corporations rather than to each other, meaning one could build without having to kiss up or posture to get their peers to like them.
To the selling point, Varun and Luke mentioned another difference between the U.S. and U.K. ecosystem. “It’s a relatively fleeting market,” Varun said of the U.S. “You get quick wins. Here, it’s hard to close a customer, but if they close, they stay with you longer.”
Coming to America
Eventually, though, the road for many U.K. startups goes straight to the U.S.
In the U.K., founders have access to affordable top talent from universities like Oxbridge and a time zone that makes it easier to work with the rest of Europe, the Middle East, Asia, and parts of North America. In the U.S., however, they have access to the world’s largest economy and, most importantly, a lot of investors willing to write large checks, from pre-seed to growth stages.
“It’s almost like a factory line in a way,” Varun said. “You start here, and then you expand there or vice versa.”
American investors are also playing a role in luring British talent away from the country. I told the Lift House residents about one startup founder who said a top investor wouldn’t even back the company unless she relocated to the U.S. She ended up doing so, though decided to keep her family based in the U.K. to raise her children.
“We had an investor in Miami who said the same thing,” Luke said of an investor trying to get him and Varun to move to the U.S. “It’s quite a common practice.” He and Varun have already begun their U.S. expansion, and despite loving London, the duo hasn’t ruled out moving to the U.S. to be closer to their customers.
David, who has a brain coaching startup, is the one who introduced journaling into the household. Image Credits:TechCrunch
That’s the tension bubbling beneath not just the U.K.’s tech ecosystem but most of Europe’s. “I work with a lot of people trying to support the European ecosystem more,” Plumb said.
Yet, founders “talk about London; everyone is bullish on the country until they get the opportunity to leave,” Aldean added.
The Lift House lease has about a year left, and there is sentiment in the house to keep it going for as long as they can. After all, there aren’t too many in London, though the city sees many short-term gatherings, like the Solana Hacker House meet-up series. Some of the more public co-living hacker houses are part of a global chain, like the San Francisco-based network The Residency, which expanded into London last year, and BaseJump, which is announcing a London version of its hacker house program soon.
In 2024, two founders tried the opposite version of the Lift House called “The London Founder House,” which Sifted covered under the headline “The people here don’t want work-life balance.” That home is noted as London’s first-ever hacker house, and though it wound down last year, it left an influence through its concept, events, and connected players around the ecosystem. To even be considered for the London Founder House, one had to have raised at least half a million dollars.
For Lift House, prospective residents need to show a hobby outside their companies and an interest in fitness. It’s the same pitch many in the Londonmaxxing ecosystem are using to keep people from leaving: That here one can have it all.
“The culture is to build something that lasts,” Aldean said, “not necessarily burn out chasing a flash.”
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.#London #hacker #house #stand #founder #burnout #TechCrunchLondon,UK")
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