AI is supposed to kill jobs. Instead, AI companies are hiring in droves, fueling a resurgence of Silicon Valley offices.

In a surprising twist, the narrative around artificial intelligence and job displacement is being turned on its head. Companies focused on AI are not only surviving; they are expanding their workforce, leading to a resurgence of office leasing in Silicon Valley. Eric Simons, the CEO of AI startup StackBlitz, has recently secured a new office location in San Francisco's upscale Levi's Plaza, with plans for employees to move in by January. This development marks a stark contrast to the past few years when many tech offices closed their doors as remote work became the norm during the pandemic. The commercial real estate market in the region suffered a significant downturn, with rising vacancy rates. However, the ongoing boom in artificial intelligence is now driving a recovery. Despite predictions from some industry leaders about extensive job losses due to automation, the reality reflects a different trend. Many AI companies are actively hiring skilled professionals who can leverage AI technologies effectively. Instead of reducing their workforce, these businesses are experiencing a hiring surge, necessitating larger office spaces across Silicon Valley and other metropolitan areas. According to researchers from Colliers, a commercial real estate firm, the demand for office space is being fueled by the growth of AI companies. They stated, "AI companies are leasing because they're hiring. Generative AI is reshaping the workforce, but it's also creating new jobs, which drives office demand." A recent report from Colliers indicates that the tech sector has become a significant force in the U.S. office market. In Silicon Valley, the average size of office leases has been steadily increasing over the past three years. In 2025 alone, office leasing has surpassed the total for 2024, with AI and AI-infrastructure companies accounting for 5.2 million square feet of leases since 2020, excluding major players like Apple, Alphabet, or Meta. Notably, areas like Sunnyvale and Fremont, California, have seen high leasing activity from AI-focused firms, particularly those specializing in robotics. This trend suggests that predictions about a widespread AI-driven job apocalypse should be approached cautiously. As AI companies continue to hire, there is a possibility that other sectors may follow suit. For those interested in keeping up with the evolving tech landscape, signing up for BI's Tech Memo newsletter is advisable.