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AI Startups Relocate to San Francisco's Smaller Neighborhoods

4/18/2026

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Story summary
  • AI startups, including Together AI, are moving to smaller San Francisco neighborhoods as office costs rise.
  • Vipul Ved Prakash, CEO of Together AI, says proximity to other AI firms fosters collaboration.
  • Urban studies theorist Richard Florida emphasizes mixed-use spaces that support longer working hours, and venture capital inflows suggest potential growth.
  • City economist Ted Egan cautions about the economic impact, noting a decline in tech job listings.