Nvidia-backed $5 billion AI company tells CNBC of major London expansion

American AI company Runway is planning a major expansion in London, CNBC has learned, following in the wake of Anthropic and OpenAI as U.S. tech companies increasingly look to tap into commercial and talent opportunities in the city.

Runway, which is building world models, on Monday exclusively told CNBC that the company plans to make London its new European headquarters and will invest more than $200 million into the U.K.'s AI ecosystem by the end of 2028.

The company most recently raised $315 million in a Series E, featuring General Atlantic, AMD Ventures and Nvidia , resulting in a $5.3 billion valuation.

"London puts us close to many of our largest European customers already doing serious work with Runway, including BBC, Fremantle and WPP, and it builds on the research team we already have here," Anastasis Germanidis, cofounder and Co-CEO at Runway, told CNBC.

"The talent pool is exceptional, and London felt like the right place to start," he added. "We expect to expand further across Europe in the near future."