Leading AI companies such as OpenAI, Anthropic, and Inflection AI, which have each raised over $1 billion, have established significant real estate footprints in San Francisco. The city has also seen a return of tech workers who had moved away during the pandemic, drawn by the thriving AI scene. Despite the Bay Area's dominance, AI startup and research activity is also strong in other regions globally, with significant contributions from China, the U.K., Germany, Canada, and France.
Key takeaways:
- The San Francisco Bay Area has become the epicenter of artificial intelligence, with more than 50% of all global venture funding for AI-related startups going to companies headquartered in the region.
- AI-related companies based in the Bay Area raised more than $27 billion in 2023, up from $14 billion in 2022.
- Major Bay Area-based AI companies like OpenAI, Anthropic and Inflection AI have each raised more than $1 billion and have established significant real estate footprints in San Francisco.
- While the Bay Area dominates AI funding, there is significant AI startup and research activity globally, with leading funding totals for AI-related startups outside of the U.S. coming from China, the U.K., Germany, Canada and France.