San Jose and San Francisco Clash in Race to be AI Capital
SAN JOSE, CA (KRON) — The battle for the title of “AI Capital of the World” is heating up, with San Jose and San Francisco fiercely competing for the prestigious designation. San Francisco has been home to pioneering AI companies like OpenAI and Anthropic, and city leaders boast of having the most AI jobs nationwide. However, San Jose is rapidly gaining ground.
San Jose has seen a surge in venture-backed artificial intelligence startups, with 91 having launched since the AI boom began. Remarkably, these startups are collectively valued at $6 billion, showcasing the city’s growing importance in the AI landscape.
Former San Francisco Mayor London Breed, in 2023, asserted San Francisco’s dominance, stating, “San Francisco is the AI Capital of the World…We are a city where people don’t just dream about what’s next. We have people with the ingenuity and talent to do the work to make that dream a reality.”
Current San Jose Mayor Matt Mahan, however, contests this claim. On Thursday, Mahan declared, “I often say San Jose is the Capital of AI.” He further emphasized the city’s robust network of innovators, highlighting both emerging companies like Coactive and Figure AI, alongside established tech giants such as Adobe, PayPal, and Zoom. Mahan stated that San Jose is “a better place to begin a startup journey than the Capital of Silicon Valley.”
To further bolster its AI sector, the City of San Jose launched a program offering $50,000 grants to early-stage AI startups that have an active or planned employee presence in the city. The mayor’s office explained that the $200,000 pilot program seeks to cultivate the “AI ecosystem” and attract a highly educated, San Jose-based workforce.
The rationale behind the program, according to Mahan’s office, is to ensure that entrepreneurs and founders can continue to thrive in San Jose despite the Bay Area’s high cost of living. San Jose aims to ensure they have access to cutting-edge technology, skilled talent, investors, and the supportive infrastructure that has defined Silicon Valley and attracted top minds for decades.
Applications for these grants will be evaluated by a panel of industry experts from IBM, CBRE, Coactive, and J2 Ventures. The selection criteria will assess the applicant’s commitment to San Jose, their likelihood of achieving success, and the ethical dimensions of their AI applications, the mayor’s office confirmed. The application period is open until May 15, with the awardees expected to be announced this summer.
