San Francisco and San Jose Clash in Bid to be AI Leader
SAN JOSE, CA (KRON) — The race is on. San Jose and San Francisco, two key cities in the Bay Area, are locked in a spirited competition for the title of “AI Capital of the World.”
San Francisco, home to AI powerhouses like OpenAI and Anthropic, boasts the highest concentration of AI jobs nationally. But San Jose is making a strong push to win the title.
Since the AI boom began, 91 venture-backed artificial intelligence startups have launched in San Jose. These startups collectively represent a valuation of $6 billion. “San Jose is the Capital of AI,” Mayor Matt Mahan stated on Thursday, echoing the words of former San Francisco Mayor London Breed, who made similar claims in 2023.
“From exciting new names like Coactive and Figure AI, to tech titans like Adobe, PayPal and Zoom, San Jose has an incredibly robust network of innovators — I can’t think of a better place to begin a startup journey than the Capital of Silicon Valley,” Mahan continued.
To bolster its claim, the City of San Jose announced a new initiative this week. The city is offering $50,000 grants to early-stage AI startups with a presence in San Jose. The program aims to cultivate the “AI ecosystem” by encouraging the growth of San Jose-based workforces with highly educated talent.
The $200,000 pilot program aims to incentivize emerging AI companies to establish themselves in San Jose, leasing office spaces and growing in the area. The program, according to Mahan’s office, is designed to make San Jose a viable option for entrepreneurs despite the area’s high cost of living.
“The Mayor is committed to ensuring that despite the high cost of living in the Bay Area, entrepreneurs and founders can continue to call San Jose home and access the cutting edge technology, talent, investors, and supportive infrastructure that has defined Silicon Valley and attracted the best and brightest for decades,” his office wrote.
Applications for the grants will be evaluated by a panel of industry experts from IBM, CBRE, Coactive, and J2 Ventures. The criteria for selection will include the applicant’s commitment to San Jose, their potential for success, and the startup’s adherence to ethical AI practices, according to the mayor’s office. The application period will remain open until May 15, with award recipients scheduled to be announced this summer.
