Sadiq Khan has invited artificial intelligence developer Anthropic to expand its operations in London after the company was blacklisted by Donald Trump’s administration this week, positioning the UK capital as an alternative base for the US firm following its dispute with Washington over military uses of AI.

According to reporting by The Times, Khan has written to Anthropic chief executive Dario Amodei congratulating him for the company’s “steadfastness” after it refused to allow its AI models to be used for potential mass domestic surveillance or autonomous weapons systems by the US military.

Khan said in the letter that London offered a stable regulatory environment for companies developing advanced AI systems. “Anthropic’s approach to safety and governance reflects the principles we want to see embedded in future AI development,” he said, adding: “I believe that London can provide the stable, proportionate and pro-innovation environment in which this kind of AI can flourish.”

The dispute escalated after the US government labelled Anthropic a supply chain risk and ordered federal agencies to stop using its technology. The designation followed the collapse of negotiations between the company and the Pentagon over access to its models, including its AI assistant Claude.

A White House spokesperson told the BBC that the administration stood by the decision, saying: “As President Trump said, we will never allow a radical left, woke company to dictate how our United States Military fights wars.”

Anthropic has defended its stance, arguing that current frontier AI systems are not reliable enough for autonomous weapons or large-scale surveillance. Amodei said the company would challenge the designation in US courts, stating that “the law requires the Secretary of War to use the least restrictive means necessary to accomplish the goal of protecting the supply chain”.

London has emerged as one of the most significant centres for AI research outside the US and China, hosting firms including Google DeepMind, OpenAI and Anthropic. The latter already employs around 200 staff in the capital and has developed parts of its technology there.

Khan’s letter also proposed discussions about expanding the company’s London presence and supporting growth in the sector as AI adoption accelerates. The mayor has warned previously that the technology could have a “colossal” impact on jobs in finance and professional services without appropriate safeguards.

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