Quantifying the AI Boom across major markets

Total AI VC funding from 2023 to present in the San Francisco Bay Area has eclipsed funding numbers for both Europe and China. Additionally, the Bay Area also accounts for 53.3% of total AI funding in the U.S.
Diving deeper into the numbers, Washington DC led the way with the highest percentage share of AI funding compared to total funding at 36.5%. This was followed by the San Francisco Bay Area and the Greater New York region at 28.0% and 25.6%, respectively.
It remains to be seen exactly how this influx of VC funding will affect commercial real estate in the long run, or whether the industry’s growth is sustainable. However, in the short term, AI companies in San Francisco have leased 1.1 msf of space in just the last year, expanding the industry's total footprint to almost 3.5 msf.

March 6, 2024