Software giant Salesforce is planning to invest $15 billion in San Francisco over the next five years to strengthen the city’s dominance in artificial intelligence.
“This $15 billion investment reflects our deep commitment to our hometown — advancing AI innovation, creating jobs, and helping companies and our communities thrive in this incredible new era,” said Salesforce Chief Executive Marc Benioff in a statement.
The funding is the latest example of how the frenzy around artificial intelligence has been shining a spotlight on San Francisco, the home of major tech companies such as Salesforce and ChatGPT maker OpenAI.
Benioff’s remarks also came ahead of the company’s Dreamforce conference in San Francisco, an event that runs through Thursday.
The conference is expected to bring nearly 50,000 people to the city, generate $130 million in revenue for San Francisco and create 35,000 local jobs, Salesforce said in a news release on Monday.
Last week, Benioff also told the New York Times he thought Trump should send the National Guard to help reduce crime in San Francisco after the president said Democrats had “destroyed” the city.
Salesforce’s multibillion-dollar investment will go toward a new hub on the company’s San Francisco campus that will support workforce development and training.
On social media platform X, Benioff also posted that the investment will help “build a greater, safer city for everyone.”
Salesforce, a platform that helps businesses manage customer data and track sales, is also making other commitments to San Francisco as the competition to dominate AI heats up.
On Monday, the company also announced a $100-million investment in the UCSF Benioff Children’s Hospital and a $39-million investment to support AI education and readiness, including in the San Francisco Unified School District and Oakland Unified School District.
Salesforce has also been promoting the use of “AI agents” that are capable of proactively doing work without constant input from a human. Some tasks agents can complete include responding to customer questions and generating marketing materials.
The rise of artificial intelligence has also been fueling anxiety about whether technology will automate certain jobs, including in customer service and software engineering, amid job cuts.
In September, Benioff said his company was able to shrink the number of people in support roles from 9,000 to 5,000 because AI agents are helping to automate certain tasks. He also previously said AI is doing 30% to 50% of the company’s work.
In July, the Brookings Institution called the San Francisco and San Jose metropolitan areas “superstars” when it comes to AI readiness. The report noted though that more AI-ready metro areas have to be wary about AI replacing jobs as technology reshapes the way people work.
The Washington, D.C., think tank examined data such as venture capital funding, AI job postings and the number of computer science degree holders in certain areas.
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