AI boom is city's weirdest tech boom, says S.F.'s chief economist

"The AI boom is adding much more money to San Francisco's economy, but its impacts are different. During the dot-com boom, companies spent freely on office space."

"The city lost over 30,000 tech jobs in the past three years - nearly all of the job losses reported citywide."

"Between 2021 and 2024, the share of payroll expenses paid by tech companies in San Francisco has declined from 44 percent to 11 percent."

"Despite the job losses, tech workers are moving back to San Francisco after several years of relocating to other cities."

San Francisco's AI boom has attracted 60% of U.S. venture capital investment in AI, totaling nearly $190 billion for 2,500 startups. Unlike the dot-com boom, this surge has led to a net loss of 7.5 million square feet of office space and over 30,000 tech jobs in three years. Despite a decline in local payroll contributions from tech companies, there is a paradox of a hot apartment market amidst a cold labor market, with tech workers returning to the city, suggesting long-term optimism for the economy.

Read at Mission Local