Mr Suleyman said the new UK office would “collaborate closely” with staff at OpenAI, which it has invested heavily into.
Microsoft previously said it would be building on its initial $1bn (£790m) investment in OpenAI with a “multi-year, multi-billion” partnership at the start of 2023.
It has since pledged its support to OpenAI chief executive Sam Altman, especially during his chaotic removal and reinstatement at the helm of the firm in November.
Since then Microsoft has become the world’s most valuable listed company, with its market value reaching more than $3tn.
“Microsoft AI opening a new hub in the heart of London is another feather in the cap of the capital’s burgeoning tech ecosystem,” said Russ Shaw, founder of campaign group Tech London Advocates.
He said the announcement of its London office “should be seen as a huge vote of confidence for the UK from one of the global tech industry’s major players”.
“AI is already helping people to work more efficiently and creatively, and it’s vital for the UK’s status as a world-leading tech ecosystem that it remains at the forefront of research and innovation into the technology,” he added.
