AI is supposed to kill jobs. Instead, AI companies are hiring in droves, fueling a resurgence of Silicon Valley offices.

"Some AI executives have been predicting big job losses due to the technology. Yet, many AI companies are hiring huge numbers of human employees. That's driving an unlikely resurgence in Silicon Valley's office market. Eric Simons, CEO of AI startup StackBlitz, recently announced a new office lease in San Francisco. It's in Levi's Plaza, a swanky location near the water. The buildout is underway, and employees are expected to move in around January."

"A few years ago, this was unheard of. Tech offices across Silicon Valley shut down as employees transitioned to remote work during the pandemic. The region's commercial real estate market plunged, and vacancies soared. Now, though, the artificial intelligence boom is fueling a recovery. It's a strange phenomenon. Generative AI is supposed to automate many tasks, with some industry executives predicting huge job losses. However, if you examine the actions of AI companies, rather than their words, a different future begins to emerge."

Many AI executives predict job losses, yet AI companies are hiring large numbers of human employees. That hiring surge is driving an unlikely resurgence in Silicon Valley's office market. Startups such as StackBlitz are signing new leases in premium locations like Levi's Plaza and preparing buildouts for employee moves. During the pandemic, tech offices closed and vacancies rose, but the generative AI boom is creating new roles and office demand. Commercial real estate firm Colliers reports that AI-driven leases have grown in size, making tech a major driver of the US office market, with millions of square feet leased since 2020.

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