![XPENG is doing R&D in the U.S., but isn’t selling cars there. Here’s why.
EV manufacturer XPENG will begin the global rollout of its VLA 2.0 autonomous driving system next year, the AI-powered model marking an important step in the company’s efforts to develop driverless cars. Unfortunately, this tech won’t be arriving in the U.S., with high tariffs continuing to keep the Chinese automakers out of the country.
SEE ALSO:
Chinese EVs are spreading across the globe, but not in the U.S.
Yet despite this, XPENG continues to maintain its Silicon Valley R&D centre, as well as develop its tech to account for U.S. drivers. Speaking to Mashable, XPENG’s General Intelligence Center head Dr. Xianming Liu explained that, while it isn’t in the U.S. market and doesn’t test its cars in the country, having an R&D centre there remains invaluable for ensuring it’s familiar with driving habits and conditions across the world.“We need to make sure we and our R&D team understand the regulations, the traffic rules, but also the customer needs or customer habits. Once you have people locally drive [their cars] every day in Europe, in the U.S., you will know what people will like,” said Liu. “How people are using [their cars] and how the regulations are different. I mean, the traffic rules are different, the traffic signs, everything is different.”XPENG has also established an R&D centre in Munich, Germany, Liu telling Mashable that each of these locations offer the company specific individual advantages. While Silicon Valley has a lot of talent and innovation, Germany excels at manufacturing and is home to several successful automotive companies. By conducting R&D in these areas, XPENG aims to both utilise and learn from these resources.“Once you have an R&D centre in all the areas of the world, you can combine all the talent, all the thoughts together, and you can just make sure everyone is complementary to each other,” said Liu.EVs: the future of the automotive industry
XPENG showed off the technology in its cars at the Beijing Auto Show.
Credit: XPENG
This includes tapping into China’s resources as well. Like the San Francisco Bay Area, Liu stated that there’s an abundance of talent in China’s Greater Bay Area, including in Guangzhou where XPENG is headquartered. The widespread acceptance of EVs in China certainly helps autonomous car development in the region as well.“We have people, we have freedom, we have flexibility to build the innovations,” said Liu, speaking on the advantages of their Chinese R&D centre. “But also in China, the application of the AI system is pretty fast… People accept the concept of AI, accept the concept of [autonomous] driving, and also are willing to use it. So this gives us big room to keep iterating on the product.”Over half of all new cars sold in China are New Energy Vehicles (NEV), meaning that they are primarily or entirely powered by electricity. This April, that number rose above 60 percent. China isn’t the only country embracing EVs either, with global electric car sales rising by over 25 percent in 2024. Almost all new cars sold in Norway during 2025 were EVs, while regions such as Latin America and Africa saw EV adoption double. In comparison, U.S. EV uptake has slowed significantly over the past two years, although they still account for approximately 10 percent of new car sales in the country.“The new energy revolution is changing the world,” said Liu. “It’s not only happening in the U.S., not only in China, but also in other countries. South America, Central America, and even Europe, South Asia. So we will see the number keep increasing. And this can be very beneficial to the economy and also to the environment.”These aren’t the only advantages to widespread EV adoption. Liu also explained that NEVs have better compatibility with autonomous driving systems than traditional internal combustion engine (ICE) cars.“The New Energy Vehicle is more suitable for intelligent car systems or smart driving because the control chain is shorter,” Liu said. “The signal is an electric signal instead of the power train using the gas.”
Mashable Light Speed
As such, it is far simpler to develop a fully autonomous EV than an ICE vehicle. If fully self-driving cars are to not only become a reality, but tech that is commonplace, it will require people — and governments — to embrace electric cars first.Creating a safe self-driving car
Autonomous driving systems are better suited to EVs than traditional combustion engine cars.
Credit: XPENG
Liu previously worked at U.S. self-driving car company Cruise, a subsidiary of General Motors. When asked to compare development approaches in the U.S. and China’s autonomous car industries, he said he found them to be the same: with safety as paramount. “One underlying principle or philosophy that is not changing across different areas is safety,” said Liu. “That’s the first principle. No matter where you’re working at, no matter U.S., Europe, or China, or even Southeast Asia, the problem is the same.”Secondary to this is to ensure the car feels safe as well, offering a smooth, comfortable experience that drivers can enjoy with peace of mind. “We have four axes to evaluate our system. We call it CCES: comfort, compliance, efficiency, and safety,” said Liu. “So you can make sure the car is safe enough, but a lot of hard breaks [are] just not [comfortable].”For Liu, controlling the car’s speed is key to ensuring both safety and comfort. To deliver this, XPENG trains its VLA 2.0 autonomous driving model to identify and adjust to real-time road conditions, as well as recognise road marks and signs, rather than rely on map data to determine the car’s behaviour.
“We don’t use any kind of rules or external information to say you have to drive this speed,” said Liu. “Of course, people can control the wheel, control the scroll to set up the speed limit [of the car]. The model tries to learn what kind of typical speed people will drive in this kind of situation, because we need to make sure the car is safe enough and also [isn’t] too slow.” Autonomous cars for the world (except the U.S.)
Though VLA 2.0 is expected to hit the global market in 2027, XPENG hasn’t released any details about its international release schedule. At present, which country it will arrive in first will largely come down to whose regulations and standards XPENG can satisfy first.“We’re trying to work on different areas, different regions of the world, but we work with local governments to [ensure] we meet all the requirements,” said Liu.The U.S. may not be one of these regions, but being shut out of that market hasn’t slowed XPENG’s ambitions. The company is continuing to invest in R&D to ensure it can meet the different needs of new markets wherever they are. “We are seeing the trend [of increasing EV adoption] is changing the entire industry. All the cars selling now in China, if you don’t have the smart driving system, usually people will not consider it,” said Liu. “That’s why we keep pushing hard on the physical AI. Because we believe this is going to be the next big thing, and this is going to be invaluable in the next decade.”The auto industry is evolving at a rapid pace, with EV acceptance and adoption accelerating across the globe. XPENG is working to ensure they’re prepared for this future, and will be ready if the U.S. decides to join in.This interview has been lightly edited for grammar and clarity.Disclosure: Mashable travelled to China as a guest of XPENG.
Topics
Self-Driving Cars
Cars
#XPENG #U.S #isnt #selling #cars #Heresxpeng p7,vla 2.0,autonomous driving,self-driving car,electric vehicle,china,mashable,amanda yeoh,self-parking,flying car,land aircraft carrier,us tariffs,automotive technology,evs](https://i0.wp.com/helios-i.mashable.com/imagery/articles/00VrAcFiAYV0ySTyVkLtTdH/images-2.fill.size_2000x1125.v1781500353.png?ssl=1 "XPENG is doing R&D in the U.S., but isn’t selling cars there. Here’s why.
EV manufacturer XPENG will begin the global rollout of its VLA 2.0 autonomous driving system next year, the AI-powered model marking an important step in the company’s efforts to develop driverless cars. Unfortunately, this tech won’t be arriving in the U.S., with high tariffs continuing to keep the Chinese automakers out of the country.
SEE ALSO:
Chinese EVs are spreading across the globe, but not in the U.S.
Yet despite this, XPENG continues to maintain its Silicon Valley R&D centre, as well as develop its tech to account for U.S. drivers. Speaking to Mashable, XPENG’s General Intelligence Center head Dr. Xianming Liu explained that, while it isn’t in the U.S. market and doesn’t test its cars in the country, having an R&D centre there remains invaluable for ensuring it’s familiar with driving habits and conditions across the world.“We need to make sure we and our R&D team understand the regulations, the traffic rules, but also the customer needs or customer habits. Once you have people locally drive [their cars] every day in Europe, in the U.S., you will know what people will like,” said Liu. “How people are using [their cars] and how the regulations are different. I mean, the traffic rules are different, the traffic signs, everything is different.”XPENG has also established an R&D centre in Munich, Germany, Liu telling Mashable that each of these locations offer the company specific individual advantages. While Silicon Valley has a lot of talent and innovation, Germany excels at manufacturing and is home to several successful automotive companies. By conducting R&D in these areas, XPENG aims to both utilise and learn from these resources.“Once you have an R&D centre in all the areas of the world, you can combine all the talent, all the thoughts together, and you can just make sure everyone is complementary to each other,” said Liu.EVs: the future of the automotive industry
XPENG showed off the technology in its cars at the Beijing Auto Show.
Credit: XPENG
This includes tapping into China’s resources as well. Like the San Francisco Bay Area, Liu stated that there’s an abundance of talent in China’s Greater Bay Area, including in Guangzhou where XPENG is headquartered. The widespread acceptance of EVs in China certainly helps autonomous car development in the region as well.“We have people, we have freedom, we have flexibility to build the innovations,” said Liu, speaking on the advantages of their Chinese R&D centre. “But also in China, the application of the AI system is pretty fast… People accept the concept of AI, accept the concept of [autonomous] driving, and also are willing to use it. So this gives us big room to keep iterating on the product.”Over half of all new cars sold in China are New Energy Vehicles (NEV), meaning that they are primarily or entirely powered by electricity. This April, that number rose above 60 percent. China isn’t the only country embracing EVs either, with global electric car sales rising by over 25 percent in 2024. Almost all new cars sold in Norway during 2025 were EVs, while regions such as Latin America and Africa saw EV adoption double. In comparison, U.S. EV uptake has slowed significantly over the past two years, although they still account for approximately 10 percent of new car sales in the country.“The new energy revolution is changing the world,” said Liu. “It’s not only happening in the U.S., not only in China, but also in other countries. South America, Central America, and even Europe, South Asia. So we will see the number keep increasing. And this can be very beneficial to the economy and also to the environment.”These aren’t the only advantages to widespread EV adoption. Liu also explained that NEVs have better compatibility with autonomous driving systems than traditional internal combustion engine (ICE) cars.“The New Energy Vehicle is more suitable for intelligent car systems or smart driving because the control chain is shorter,” Liu said. “The signal is an electric signal instead of the power train using the gas.”
Mashable Light Speed
As such, it is far simpler to develop a fully autonomous EV than an ICE vehicle. If fully self-driving cars are to not only become a reality, but tech that is commonplace, it will require people — and governments — to embrace electric cars first.Creating a safe self-driving car
Autonomous driving systems are better suited to EVs than traditional combustion engine cars.
Credit: XPENG
Liu previously worked at U.S. self-driving car company Cruise, a subsidiary of General Motors. When asked to compare development approaches in the U.S. and China’s autonomous car industries, he said he found them to be the same: with safety as paramount. “One underlying principle or philosophy that is not changing across different areas is safety,” said Liu. “That’s the first principle. No matter where you’re working at, no matter U.S., Europe, or China, or even Southeast Asia, the problem is the same.”Secondary to this is to ensure the car feels safe as well, offering a smooth, comfortable experience that drivers can enjoy with peace of mind. “We have four axes to evaluate our system. We call it CCES: comfort, compliance, efficiency, and safety,” said Liu. “So you can make sure the car is safe enough, but a lot of hard breaks [are] just not [comfortable].”For Liu, controlling the car’s speed is key to ensuring both safety and comfort. To deliver this, XPENG trains its VLA 2.0 autonomous driving model to identify and adjust to real-time road conditions, as well as recognise road marks and signs, rather than rely on map data to determine the car’s behaviour.
“We don’t use any kind of rules or external information to say you have to drive this speed,” said Liu. “Of course, people can control the wheel, control the scroll to set up the speed limit [of the car]. The model tries to learn what kind of typical speed people will drive in this kind of situation, because we need to make sure the car is safe enough and also [isn’t] too slow.” Autonomous cars for the world (except the U.S.)
Though VLA 2.0 is expected to hit the global market in 2027, XPENG hasn’t released any details about its international release schedule. At present, which country it will arrive in first will largely come down to whose regulations and standards XPENG can satisfy first.“We’re trying to work on different areas, different regions of the world, but we work with local governments to [ensure] we meet all the requirements,” said Liu.The U.S. may not be one of these regions, but being shut out of that market hasn’t slowed XPENG’s ambitions. The company is continuing to invest in R&D to ensure it can meet the different needs of new markets wherever they are. “We are seeing the trend [of increasing EV adoption] is changing the entire industry. All the cars selling now in China, if you don’t have the smart driving system, usually people will not consider it,” said Liu. “That’s why we keep pushing hard on the physical AI. Because we believe this is going to be the next big thing, and this is going to be invaluable in the next decade.”The auto industry is evolving at a rapid pace, with EV acceptance and adoption accelerating across the globe. XPENG is working to ensure they’re prepared for this future, and will be ready if the U.S. decides to join in.This interview has been lightly edited for grammar and clarity.Disclosure: Mashable travelled to China as a guest of XPENG.
Topics
Self-Driving Cars
Cars
#XPENG #U.S #isnt #selling #cars #Heresxpeng p7,vla 2.0,autonomous driving,self-driving car,electric vehicle,china,mashable,amanda yeoh,self-parking,flying car,land aircraft carrier,us tariffs,automotive technology,evs")
XPENG is doing R&D in the U.S., but isn’t selling cars there. Here’s why.
EV manufacturer XPENG will begin the global rollout of its VLA 2.0 autonomous driving system next year, the AI-powered model marking an important step in the company’s efforts to develop driverless cars. Unfortunately, this tech won’t be arriving in the U.S., with high tariffs continuing to keep the Chinese automakers out of the country.
Yet despite this, XPENG continues to maintain its Silicon Valley R&D centre, as well as develop its tech to account for U.S. drivers. Speaking to Mashable, XPENG’s General Intelligence Center head Dr. Xianming Liu explained that, while it isn’t in the U.S. market and doesn’t test its cars in the country, having an R&D centre there remains invaluable for ensuring it’s familiar with driving habits and conditions across the world.
“We need to make sure we and our R&D team understand the regulations, the traffic rules, but also the customer needs or customer habits. Once you have people locally drive [their cars] every day in Europe, in the U.S., you will know what people will like,” said Liu. “How people are using [their cars] and how the regulations are different. I mean, the traffic rules are different, the traffic signs, everything is different.”
XPENG has also established an R&D centre in Munich, Germany, Liu telling Mashable that each of these locations offer the company specific individual advantages. While Silicon Valley has a lot of talent and innovation, Germany excels at manufacturing and is home to several successful automotive companies. By conducting R&D in these areas, XPENG aims to both utilise and learn from these resources.
“Once you have an R&D centre in all the areas of the world, you can combine all the talent, all the thoughts together, and you can just make sure everyone is complementary to each other,” said Liu.
EVs: the future of the automotive industry
![XPENG is doing R&D in the U.S., but isn’t selling cars there. Here’s why.
EV manufacturer XPENG will begin the global rollout of its VLA 2.0 autonomous driving system next year, the AI-powered model marking an important step in the company’s efforts to develop driverless cars. Unfortunately, this tech won’t be arriving in the U.S., with high tariffs continuing to keep the Chinese automakers out of the country.
SEE ALSO:
Chinese EVs are spreading across the globe, but not in the U.S.
Yet despite this, XPENG continues to maintain its Silicon Valley R&D centre, as well as develop its tech to account for U.S. drivers. Speaking to Mashable, XPENG’s General Intelligence Center head Dr. Xianming Liu explained that, while it isn’t in the U.S. market and doesn’t test its cars in the country, having an R&D centre there remains invaluable for ensuring it’s familiar with driving habits and conditions across the world.“We need to make sure we and our R&D team understand the regulations, the traffic rules, but also the customer needs or customer habits. Once you have people locally drive [their cars] every day in Europe, in the U.S., you will know what people will like,” said Liu. “How people are using [their cars] and how the regulations are different. I mean, the traffic rules are different, the traffic signs, everything is different.”XPENG has also established an R&D centre in Munich, Germany, Liu telling Mashable that each of these locations offer the company specific individual advantages. While Silicon Valley has a lot of talent and innovation, Germany excels at manufacturing and is home to several successful automotive companies. By conducting R&D in these areas, XPENG aims to both utilise and learn from these resources.“Once you have an R&D centre in all the areas of the world, you can combine all the talent, all the thoughts together, and you can just make sure everyone is complementary to each other,” said Liu.EVs: the future of the automotive industry
XPENG showed off the technology in its cars at the Beijing Auto Show.
Credit: XPENG
This includes tapping into China’s resources as well. Like the San Francisco Bay Area, Liu stated that there’s an abundance of talent in China’s Greater Bay Area, including in Guangzhou where XPENG is headquartered. The widespread acceptance of EVs in China certainly helps autonomous car development in the region as well.“We have people, we have freedom, we have flexibility to build the innovations,” said Liu, speaking on the advantages of their Chinese R&D centre. “But also in China, the application of the AI system is pretty fast… People accept the concept of AI, accept the concept of [autonomous] driving, and also are willing to use it. So this gives us big room to keep iterating on the product.”Over half of all new cars sold in China are New Energy Vehicles (NEV), meaning that they are primarily or entirely powered by electricity. This April, that number rose above 60 percent. China isn’t the only country embracing EVs either, with global electric car sales rising by over 25 percent in 2024. Almost all new cars sold in Norway during 2025 were EVs, while regions such as Latin America and Africa saw EV adoption double. In comparison, U.S. EV uptake has slowed significantly over the past two years, although they still account for approximately 10 percent of new car sales in the country.“The new energy revolution is changing the world,” said Liu. “It’s not only happening in the U.S., not only in China, but also in other countries. South America, Central America, and even Europe, South Asia. So we will see the number keep increasing. And this can be very beneficial to the economy and also to the environment.”These aren’t the only advantages to widespread EV adoption. Liu also explained that NEVs have better compatibility with autonomous driving systems than traditional internal combustion engine (ICE) cars.“The New Energy Vehicle is more suitable for intelligent car systems or smart driving because the control chain is shorter,” Liu said. “The signal is an electric signal instead of the power train using the gas.”
Mashable Light Speed
As such, it is far simpler to develop a fully autonomous EV than an ICE vehicle. If fully self-driving cars are to not only become a reality, but tech that is commonplace, it will require people — and governments — to embrace electric cars first.Creating a safe self-driving car
Autonomous driving systems are better suited to EVs than traditional combustion engine cars.
Credit: XPENG
Liu previously worked at U.S. self-driving car company Cruise, a subsidiary of General Motors. When asked to compare development approaches in the U.S. and China’s autonomous car industries, he said he found them to be the same: with safety as paramount. “One underlying principle or philosophy that is not changing across different areas is safety,” said Liu. “That’s the first principle. No matter where you’re working at, no matter U.S., Europe, or China, or even Southeast Asia, the problem is the same.”Secondary to this is to ensure the car feels safe as well, offering a smooth, comfortable experience that drivers can enjoy with peace of mind. “We have four axes to evaluate our system. We call it CCES: comfort, compliance, efficiency, and safety,” said Liu. “So you can make sure the car is safe enough, but a lot of hard breaks [are] just not [comfortable].”For Liu, controlling the car’s speed is key to ensuring both safety and comfort. To deliver this, XPENG trains its VLA 2.0 autonomous driving model to identify and adjust to real-time road conditions, as well as recognise road marks and signs, rather than rely on map data to determine the car’s behaviour.
“We don’t use any kind of rules or external information to say you have to drive this speed,” said Liu. “Of course, people can control the wheel, control the scroll to set up the speed limit [of the car]. The model tries to learn what kind of typical speed people will drive in this kind of situation, because we need to make sure the car is safe enough and also [isn’t] too slow.” Autonomous cars for the world (except the U.S.)
Though VLA 2.0 is expected to hit the global market in 2027, XPENG hasn’t released any details about its international release schedule. At present, which country it will arrive in first will largely come down to whose regulations and standards XPENG can satisfy first.“We’re trying to work on different areas, different regions of the world, but we work with local governments to [ensure] we meet all the requirements,” said Liu.The U.S. may not be one of these regions, but being shut out of that market hasn’t slowed XPENG’s ambitions. The company is continuing to invest in R&D to ensure it can meet the different needs of new markets wherever they are. “We are seeing the trend [of increasing EV adoption] is changing the entire industry. All the cars selling now in China, if you don’t have the smart driving system, usually people will not consider it,” said Liu. “That’s why we keep pushing hard on the physical AI. Because we believe this is going to be the next big thing, and this is going to be invaluable in the next decade.”The auto industry is evolving at a rapid pace, with EV acceptance and adoption accelerating across the globe. XPENG is working to ensure they’re prepared for this future, and will be ready if the U.S. decides to join in.This interview has been lightly edited for grammar and clarity.Disclosure: Mashable travelled to China as a guest of XPENG.
Topics
Self-Driving Cars
Cars
#XPENG #U.S #isnt #selling #cars #Heresxpeng p7,vla 2.0,autonomous driving,self-driving car,electric vehicle,china,mashable,amanda yeoh,self-parking,flying car,land aircraft carrier,us tariffs,automotive technology,evs](https://helios-i.mashable.com/imagery/articles/00VrAcFiAYV0ySTyVkLtTdH/images-2.fill.size_2000x1125.v1781500353.png "XPENG is doing R&D in the U.S., but isn’t selling cars there. Here’s why.
EV manufacturer XPENG will begin the global rollout of its VLA 2.0 autonomous driving system next year, the AI-powered model marking an important step in the company’s efforts to develop driverless cars. Unfortunately, this tech won’t be arriving in the U.S., with high tariffs continuing to keep the Chinese automakers out of the country.
SEE ALSO:
Chinese EVs are spreading across the globe, but not in the U.S.
Yet despite this, XPENG continues to maintain its Silicon Valley R&D centre, as well as develop its tech to account for U.S. drivers. Speaking to Mashable, XPENG’s General Intelligence Center head Dr. Xianming Liu explained that, while it isn’t in the U.S. market and doesn’t test its cars in the country, having an R&D centre there remains invaluable for ensuring it’s familiar with driving habits and conditions across the world.“We need to make sure we and our R&D team understand the regulations, the traffic rules, but also the customer needs or customer habits. Once you have people locally drive [their cars] every day in Europe, in the U.S., you will know what people will like,” said Liu. “How people are using [their cars] and how the regulations are different. I mean, the traffic rules are different, the traffic signs, everything is different.”XPENG has also established an R&D centre in Munich, Germany, Liu telling Mashable that each of these locations offer the company specific individual advantages. While Silicon Valley has a lot of talent and innovation, Germany excels at manufacturing and is home to several successful automotive companies. By conducting R&D in these areas, XPENG aims to both utilise and learn from these resources.“Once you have an R&D centre in all the areas of the world, you can combine all the talent, all the thoughts together, and you can just make sure everyone is complementary to each other,” said Liu.EVs: the future of the automotive industry
XPENG showed off the technology in its cars at the Beijing Auto Show.
Credit: XPENG
This includes tapping into China’s resources as well. Like the San Francisco Bay Area, Liu stated that there’s an abundance of talent in China’s Greater Bay Area, including in Guangzhou where XPENG is headquartered. The widespread acceptance of EVs in China certainly helps autonomous car development in the region as well.“We have people, we have freedom, we have flexibility to build the innovations,” said Liu, speaking on the advantages of their Chinese R&D centre. “But also in China, the application of the AI system is pretty fast… People accept the concept of AI, accept the concept of [autonomous] driving, and also are willing to use it. So this gives us big room to keep iterating on the product.”Over half of all new cars sold in China are New Energy Vehicles (NEV), meaning that they are primarily or entirely powered by electricity. This April, that number rose above 60 percent. China isn’t the only country embracing EVs either, with global electric car sales rising by over 25 percent in 2024. Almost all new cars sold in Norway during 2025 were EVs, while regions such as Latin America and Africa saw EV adoption double. In comparison, U.S. EV uptake has slowed significantly over the past two years, although they still account for approximately 10 percent of new car sales in the country.“The new energy revolution is changing the world,” said Liu. “It’s not only happening in the U.S., not only in China, but also in other countries. South America, Central America, and even Europe, South Asia. So we will see the number keep increasing. And this can be very beneficial to the economy and also to the environment.”These aren’t the only advantages to widespread EV adoption. Liu also explained that NEVs have better compatibility with autonomous driving systems than traditional internal combustion engine (ICE) cars.“The New Energy Vehicle is more suitable for intelligent car systems or smart driving because the control chain is shorter,” Liu said. “The signal is an electric signal instead of the power train using the gas.”
Mashable Light Speed
As such, it is far simpler to develop a fully autonomous EV than an ICE vehicle. If fully self-driving cars are to not only become a reality, but tech that is commonplace, it will require people — and governments — to embrace electric cars first.Creating a safe self-driving car
Autonomous driving systems are better suited to EVs than traditional combustion engine cars.
Credit: XPENG
Liu previously worked at U.S. self-driving car company Cruise, a subsidiary of General Motors. When asked to compare development approaches in the U.S. and China’s autonomous car industries, he said he found them to be the same: with safety as paramount. “One underlying principle or philosophy that is not changing across different areas is safety,” said Liu. “That’s the first principle. No matter where you’re working at, no matter U.S., Europe, or China, or even Southeast Asia, the problem is the same.”Secondary to this is to ensure the car feels safe as well, offering a smooth, comfortable experience that drivers can enjoy with peace of mind. “We have four axes to evaluate our system. We call it CCES: comfort, compliance, efficiency, and safety,” said Liu. “So you can make sure the car is safe enough, but a lot of hard breaks [are] just not [comfortable].”For Liu, controlling the car’s speed is key to ensuring both safety and comfort. To deliver this, XPENG trains its VLA 2.0 autonomous driving model to identify and adjust to real-time road conditions, as well as recognise road marks and signs, rather than rely on map data to determine the car’s behaviour.
“We don’t use any kind of rules or external information to say you have to drive this speed,” said Liu. “Of course, people can control the wheel, control the scroll to set up the speed limit [of the car]. The model tries to learn what kind of typical speed people will drive in this kind of situation, because we need to make sure the car is safe enough and also [isn’t] too slow.” Autonomous cars for the world (except the U.S.)
Though VLA 2.0 is expected to hit the global market in 2027, XPENG hasn’t released any details about its international release schedule. At present, which country it will arrive in first will largely come down to whose regulations and standards XPENG can satisfy first.“We’re trying to work on different areas, different regions of the world, but we work with local governments to [ensure] we meet all the requirements,” said Liu.The U.S. may not be one of these regions, but being shut out of that market hasn’t slowed XPENG’s ambitions. The company is continuing to invest in R&D to ensure it can meet the different needs of new markets wherever they are. “We are seeing the trend [of increasing EV adoption] is changing the entire industry. All the cars selling now in China, if you don’t have the smart driving system, usually people will not consider it,” said Liu. “That’s why we keep pushing hard on the physical AI. Because we believe this is going to be the next big thing, and this is going to be invaluable in the next decade.”The auto industry is evolving at a rapid pace, with EV acceptance and adoption accelerating across the globe. XPENG is working to ensure they’re prepared for this future, and will be ready if the U.S. decides to join in.This interview has been lightly edited for grammar and clarity.Disclosure: Mashable travelled to China as a guest of XPENG.
Topics
Self-Driving Cars
Cars
#XPENG #U.S #isnt #selling #cars #Heresxpeng p7,vla 2.0,autonomous driving,self-driving car,electric vehicle,china,mashable,amanda yeoh,self-parking,flying car,land aircraft carrier,us tariffs,automotive technology,evs")
XPENG showed off the technology in its cars at the Beijing Auto Show.
Credit: XPENG
This includes tapping into China’s resources as well. Like the San Francisco Bay Area, Liu stated that there’s an abundance of talent in China’s Greater Bay Area, including in Guangzhou where XPENG is headquartered. The widespread acceptance of EVs in China certainly helps autonomous car development in the region as well.
“We have people, we have freedom, we have flexibility to build the innovations,” said Liu, speaking on the advantages of their Chinese R&D centre. “But also in China, the application of the AI system is pretty fast… People accept the concept of AI, accept the concept of [autonomous] driving, and also are willing to use it. So this gives us big room to keep iterating on the product.”
Over half of all new cars sold in China are New Energy Vehicles (NEV), meaning that they are primarily or entirely powered by electricity. This April, that number rose above 60 percent. China isn’t the only country embracing EVs either, with global electric car sales rising by over 25 percent in 2024. Almost all new cars sold in Norway during 2025 were EVs, while regions such as Latin America and Africa saw EV adoption double. In comparison, U.S. EV uptake has slowed significantly over the past two years, although they still account for approximately 10 percent of new car sales in the country.
“The new energy revolution is changing the world,” said Liu. “It’s not only happening in the U.S., not only in China, but also in other countries. South America, Central America, and even Europe, South Asia. So we will see the number keep increasing. And this can be very beneficial to the economy and also to the environment.”
These aren’t the only advantages to widespread EV adoption. Liu also explained that NEVs have better compatibility with autonomous driving systems than traditional internal combustion engine (ICE) cars.
“The New Energy Vehicle is more suitable for intelligent car systems or smart driving because the control chain is shorter,” Liu said. “The signal is an electric signal instead of the power train using the gas.”
Mashable Light Speed
As such, it is far simpler to develop a fully autonomous EV than an ICE vehicle. If fully self-driving cars are to not only become a reality, but tech that is commonplace, it will require people — and governments — to embrace electric cars first.
Creating a safe self-driving car
Autonomous driving systems are better suited to EVs than traditional combustion engine cars.
Credit: XPENG
Liu previously worked at U.S. self-driving car company Cruise, a subsidiary of General Motors. When asked to compare development approaches in the U.S. and China’s autonomous car industries, he said he found them to be the same: with safety as paramount.
“One underlying principle or philosophy that is not changing across different areas is safety,” said Liu. “That’s the first principle. No matter where you’re working at, no matter U.S., Europe, or China, or even Southeast Asia, the problem is the same.”
Secondary to this is to ensure the car feels safe as well, offering a smooth, comfortable experience that drivers can enjoy with peace of mind.
“We have four axes to evaluate our system. We call it CCES: comfort, compliance, efficiency, and safety,” said Liu. “So you can make sure the car is safe enough, but a lot of hard breaks [are] just not [comfortable].”
For Liu, controlling the car’s speed is key to ensuring both safety and comfort. To deliver this, XPENG trains its VLA 2.0 autonomous driving model to identify and adjust to real-time road conditions, as well as recognise road marks and signs, rather than rely on map data to determine the car’s behaviour.
“We don’t use any kind of rules or external information to say you have to drive this speed,” said Liu. “Of course, people can control the wheel, control the scroll to set up the speed limit [of the car]. The model tries to learn what kind of typical speed people will drive in this kind of situation, because we need to make sure the car is safe enough and also [isn’t] too slow.”
Autonomous cars for the world (except the U.S.)
Though VLA 2.0 is expected to hit the global market in 2027, XPENG hasn’t released any details about its international release schedule. At present, which country it will arrive in first will largely come down to whose regulations and standards XPENG can satisfy first.
“We’re trying to work on different areas, different regions of the world, but we work with local governments to [ensure] we meet all the requirements,” said Liu.
The U.S. may not be one of these regions, but being shut out of that market hasn’t slowed XPENG’s ambitions. The company is continuing to invest in R&D to ensure it can meet the different needs of new markets wherever they are.
“We are seeing the trend [of increasing EV adoption] is changing the entire industry. All the cars selling now in China, if you don’t have the smart driving system, usually people will not consider it,” said Liu. “That’s why we keep pushing hard on the physical AI. Because we believe this is going to be the next big thing, and this is going to be invaluable in the next decade.”
The auto industry is evolving at a rapid pace, with EV acceptance and adoption accelerating across the globe. XPENG is working to ensure they’re prepared for this future, and will be ready if the U.S. decides to join in.
This interview has been lightly edited for grammar and clarity.
Disclosure: Mashable travelled to China as a guest of XPENG.
Topics
Self-Driving Cars
Cars
#XPENG #U.S #isnt #selling #cars #Heresxpeng p7,vla 2.0,autonomous driving,self-driving car,electric vehicle,china,mashable,amanda yeoh,self-parking,flying car,land aircraft carrier,us tariffs,automotive technology,evs
EV manufacturer XPENG will begin the global rollout of its VLA 2.0 autonomous driving system next year, the AI-powered model marking an important step in the company’s efforts to develop driverless cars. Unfortunately, this tech won’t be arriving in the U.S., with high tariffs continuing to keep the Chinese automakers out of the country.
Yet despite this, XPENG continues to maintain its Silicon Valley R&D centre, as well as develop its tech to account for U.S. drivers. Speaking to Mashable, XPENG’s General Intelligence Center head Dr. Xianming Liu explained that, while it isn’t in the U.S. market and doesn’t test its cars in the country, having an R&D centre there remains invaluable for ensuring it’s familiar with driving habits and conditions across the world.
“We need to make sure we and our R&D team understand the regulations, the traffic rules, but also the customer needs or customer habits. Once you have people locally drive [their cars] every day in Europe, in the U.S., you will know what people will like,” said Liu. “How people are using [their cars] and how the regulations are different. I mean, the traffic rules are different, the traffic signs, everything is different.”
XPENG has also established an R&D centre in Munich, Germany, Liu telling Mashable that each of these locations offer the company specific individual advantages. While Silicon Valley has a lot of talent and innovation, Germany excels at manufacturing and is home to several successful automotive companies. By conducting R&D in these areas, XPENG aims to both utilise and learn from these resources.
“Once you have an R&D centre in all the areas of the world, you can combine all the talent, all the thoughts together, and you can just make sure everyone is complementary to each other,” said Liu.
EVs: the future of the automotive industry
XPENG showed off the technology in its cars at the Beijing Auto Show. Credit: XPENG
This includes tapping into China’s resources as well. Like the San Francisco Bay Area, Liu stated that there’s an abundance of talent in China’s Greater Bay Area, including in Guangzhou where XPENG is headquartered. The widespread acceptance of EVs in China certainly helps autonomous car development in the region as well.
“We have people, we have freedom, we have flexibility to build the innovations,” said Liu, speaking on the advantages of their Chinese R&D centre. “But also in China, the application of the AI system is pretty fast… People accept the concept of AI, accept the concept of [autonomous] driving, and also are willing to use it. So this gives us big room to keep iterating on the product.”
Over half of all new cars sold in China are New Energy Vehicles (NEV), meaning that they are primarily or entirely powered by electricity. This April, that number rose above 60 percent. China isn’t the only country embracing EVs either, with global electric car sales rising by over 25 percent in 2024. Almost all new cars sold in Norway during 2025 were EVs, while regions such as Latin America and Africa saw EV adoption double. In comparison, U.S. EV uptake has slowed significantly over the past two years, although they still account for approximately 10 percent of new car sales in the country.
“The new energy revolution is changing the world,” said Liu. “It’s not only happening in the U.S., not only in China, but also in other countries. South America, Central America, and even Europe, South Asia. So we will see the number keep increasing. And this can be very beneficial to the economy and also to the environment.”
These aren’t the only advantages to widespread EV adoption. Liu also explained that NEVs have better compatibility with autonomous driving systems than traditional internal combustion engine (ICE) cars.
“The New Energy Vehicle is more suitable for intelligent car systems or smart driving because the control chain is shorter,” Liu said. “The signal is an electric signal instead of the power train using the gas.”
Mashable Light Speed
As such, it is far simpler to develop a fully autonomous EV than an ICE vehicle. If fully self-driving cars are to not only become a reality, but tech that is commonplace, it will require people — and governments — to embrace electric cars first.
Creating a safe self-driving car
Autonomous driving systems are better suited to EVs than traditional combustion engine cars. Credit: XPENG
Liu previously worked at U.S. self-driving car company Cruise, a subsidiary of General Motors. When asked to compare development approaches in the U.S. and China’s autonomous car industries, he said he found them to be the same: with safety as paramount.
“One underlying principle or philosophy that is not changing across different areas is safety,” said Liu. “That’s the first principle. No matter where you’re working at, no matter U.S., Europe, or China, or even Southeast Asia, the problem is the same.”
Secondary to this is to ensure the car feels safe as well, offering a smooth, comfortable experience that drivers can enjoy with peace of mind.
“We have four axes to evaluate our system. We call it CCES: comfort, compliance, efficiency, and safety,” said Liu. “So you can make sure the car is safe enough, but a lot of hard breaks [are] just not [comfortable].”
For Liu, controlling the car’s speed is key to ensuring both safety and comfort. To deliver this, XPENG trains its VLA 2.0 autonomous driving model to identify and adjust to real-time road conditions, as well as recognise road marks and signs, rather than rely on map data to determine the car’s behaviour.
“We don’t use any kind of rules or external information to say you have to drive this speed,” said Liu. “Of course, people can control the wheel, control the scroll to set up the speed limit [of the car]. The model tries to learn what kind of typical speed people will drive in this kind of situation, because we need to make sure the car is safe enough and also [isn’t] too slow.”
Autonomous cars for the world (except the U.S.)
Though VLA 2.0 is expected to hit the global market in 2027, XPENG hasn’t released any details about its international release schedule. At present, which country it will arrive in first will largely come down to whose regulations and standards XPENG can satisfy first.
“We’re trying to work on different areas, different regions of the world, but we work with local governments to [ensure] we meet all the requirements,” said Liu.
The U.S. may not be one of these regions, but being shut out of that market hasn’t slowed XPENG’s ambitions. The company is continuing to invest in R&D to ensure it can meet the different needs of new markets wherever they are.
“We are seeing the trend [of increasing EV adoption] is changing the entire industry. All the cars selling now in China, if you don’t have the smart driving system, usually people will not consider it,” said Liu. “That’s why we keep pushing hard on the physical AI. Because we believe this is going to be the next big thing, and this is going to be invaluable in the next decade.”
The auto industry is evolving at a rapid pace, with EV acceptance and adoption accelerating across the globe. XPENG is working to ensure they’re prepared for this future, and will be ready if the U.S. decides to join in.
This interview has been lightly edited for grammar and clarity.
Disclosure: Mashable travelled to China as a guest of XPENG.
Topics Self-Driving Cars Cars
![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 "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://i0.wp.com/techcrunch.com/wp-content/uploads/2026/08/DM9A2852.jpg?w=680&ssl=1 "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.”
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