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

Contrary to repeated warnings that AI will destroy jobs, many AI companies are rapidly expanding headcount and signing large office leases, driving an unexpected revival of Silicon Valley’s commercial real estate. Startups like StackBlitz are moving into premium San Francisco space, and Colliers reports that AI and AI-infrastructure firms (excluding Apple, Alphabet and Meta) have completed 5.2 million sq ft of leases in Silicon Valley since 2020. So far in 2025 lease activity has already topped full-year 2024 totals (1.3M sq ft), and average lease sizes are at their highest since 2020. The trend matters because it reframes AI’s labor impact: rather than immediate net job losses, generative AI is creating demand for human experts who can build, integrate and maintain AI systems—especially in robotics and advanced manufacturing. Colliers highlights concentrated leasing in Sunnyvale (pure AI) and Fremont (AI infrastructure and manufacturing), reflecting needs for labs, factories and engineering teams. The takeaway for the AI/ML community is pragmatic: deployments require sizable multidisciplinary teams and physical infrastructure, so expect continued hiring for model engineering, data ops, hardware, safety, and integration roles—and sustained pressure on talent markets and urban office ecosystems.