From: aidotengineer
Despite common debates on social media suggesting otherwise, location remains a crucial factor in the concentration of AI talent and funding today [00:10:22]. Data indicates that specific metropolitan areas are significantly outperforming their general tech market share in the realm of AI.
San Francisco: Still a Major Hub
San Francisco continues to be a dominant location for startup engineers [00:08:23].
- Approximately 29% of all startup engineers are based in San Francisco [00:08:23].
- While slightly down from a high of 33% in 2013, this figure has been ticking up again since 2021 [00:08:30].
- For big tech companies, 50% of engineers still reside in the San Francisco Bay Area [00:08:49].
More specifically for AI, San Francisco leads the pack:
- 35% of all engineers in AI reside in San Francisco [00:09:00].
- This percentage is greater than Seattle (22%) and New York (10%) combined [00:09:08].
Other Key Locations
Alongside San Francisco, other cities are also demonstrating significant growth in the concentration of AI talent:
- New York and Seattle have both doubled their market share of engineers over the past decade [00:08:36].
- These markets, including San Francisco, are “punching well above their weight” in terms of AI hiring and AI talent [00:09:24].
Funding Concentration in AI
The concentration of AI talent in these cities correlates with funding trends:
- San Francisco accounts for nearly 38% of all early-stage funding into AI startups [00:09:48].
- This is noteworthy given that San Francisco only comprises 26% of all early-stage funding in the United States overall [00:09:58].
- This indicates that San Francisco is overperforming in both AI talent and AI funding [00:10:05].
Key Takeaways
For organizations looking to build and recruit AI teams:
- Location still matters even in a distributed work environment [00:10:22].
- San Francisco, Seattle, and New York are the primary locations for AI talent currently [00:10:27].
- It is important to monitor location and funding markets to track where talent and capital are flowing [00:10:36]. This data can help in filtering and finding the right people for a team [00:10:41].