The Silicon Valley has long been a high tech mecca. Apple, Google, Facebook, HP and Tesla are just a handful of high tech companies that call the Silicon Valley home. Part of high tech includes artificial intelligence (AI). AI finds a home in the San Jose community of Silicon Valley thanks in large part to its extensive pool of older skilled workers and lower priced office space.
AI Finds a Home in San Jose
Everyone in the Bay Area knows how expensive it can be to live here. Businesses find the same issues with running their operations. Inventory levels for offices in most of the Silicon Valley are extremely low. And if your business outgrows its current space, you are hard pressed to find more space elsewhere. Luckily, the Silicon Valley community of San Jose has so much to offer.
Office Space Throughout the Bay Area
Over the past 20 years, tech moved away from San Jose and into the San Francisco area. However, rental space there has diminished in size and increased in cost. Businesses pay around $70 or so per square foot in San Francisco. Palo Alto and Mountain View (where Google, Facebook, Tesla and HP operate) cost $90 per square foot on average. So, it's easy to see why AI finds a home in San Jose with prices set at around $38 per square foot.
Besides the price, actual space can be difficult to find in other parts of the Silicon Valley. Highly developed commercial areas make expansion challenging to say the least. In San Jose, it's a bit easier to find space for smaller companies to expand in place as they grow larger. There's also the fact that the surrounding residential landscape offers a much lower price point than San Francisco or other Silicon Valley neighborhoods. This attracts highly skilled workers with families to the area as well.
NVIDIA currently operates in Santa Clara. However, they've been working with San Jose State to create an AI-specific curriculum. San Jose city officials recognize the growing AI trend as well. They've been in talks with companies in the self-driving vehicle industry, offering up several corridors around the city as testing grounds for their AI-powered vehicles.
It's no wonder that AI finds a home in San Jose. This growing industry expects to add over $8 trillion to our nation's economy by 2035. Lower operating costs and a bigger pool of talent mean higher profits. This Silicon Valley community stands on the precipice of an economic explosion in the next 15+ years.