San Francisco-based artificial intelligence company Scale AI has announced it will establish its first international headquarters in London, centralising its European operations.

In a statement announcing the proposed move, Scale AI said the decision was a recognition of the UK’s reputation as a hub for technology, innovation and diverse talent.

“The UK has long been a hotbed for technology, talent, and diverse ideas, which is why we’re proud to establish roots here,” Scale AI CEO and founder Alexandr Wang said in a release. “When I attended last year’s UK AI Safety Summit, it was clear that the country’s leaders and policymakers are engaging thoughtfully with the AI industry.”

Scale AI provides training data for companies to develop their models. It works for clients such as OpenAI and the U.S. Army, and the company’s flagship product is the Scale Generative AI Data Engine, which enables customers to specify data and task requirements.

Scale AI said it plans a multimillion-pound investment in the UK and to initially establish a workforce of more than 50 specialist engineers and software developers.

The company will join Meta Platforms and Google’s DeepMind in establishing its presence in London after Microsoft’s April announcement of a new AI hub in Paddington focused on product development and research.

The company recently announced the creation of Microsoft AI, led by Mustafa Suleyman, co-founder of DeepMind, which is now owned by Google.

However, some concerns have been raised regarding potential stricter UK regulations for the AI sector that could impact London’s attractiveness as a European AI hub, particularly over partnerships between Big Tech and AI companies.

In a government statement, Prime Minister Rishi Sunak welcomed Scale AI’s decision and stressed its significance as a “vote of confidence in the UK’s economy and its status as a global science superpower.”

Sunak also reiterated his commitment to leveraging AI to drive innovation, and the UK government has promoted the country as a favourable destination for AI companies.