San Francisco’s tech landscape is transforming once again, this time with AI companies leading the charge. Anthropic, a rising star in the artificial intelligence arena, is doubling down on its downtown presence by leasing two additional floors at 505 Howard St. in SoMa, expanding its already significant footprint in the city.

The company, founded in 2021 by former OpenAI researchers, is making strategic moves to establish a robust campus-like environment. Currently headquartered across the street at 500 Howard St. , a 230,325-square-foot building previously subleased from Slack , Anthropic is positioning itself as a major player in the AI race.

This expansion comes on the heels of a massive $13 billion Series F funding round, signaling the company’s robust financial health and ambitious growth plans. The real estate strategy mirrors that of its competitor OpenAI, which has already accumulated nearly 1 million square feet of office space in Mission Bay.

The broader context is equally fascinating. A total of 83 AI companies have already leased approximately one million square feet of office space in San Francisco. This surge coincides with an impressive 78.2% of all U.S. venture capital funding being directed to Bay Area companies.

Neighboring tech giants are taking note. The area around Salesforce Tower is being marketed as “AI Alley,” with property owners like DivcoWest and Blackstone actively renovating and repositioning buildings to attract cutting-edge technology firms.

Anthropic’s strategic lease, which is set to expire in 2028, provides flexibility for future expansion. The company’s short-term agreement with American Realty Advisors demonstrates a nimble approach to real estate in a rapidly evolving technological landscape.

As AI continues to reshape industries and capture imaginations, San Francisco remains the epicenter of this transformative technology. Anthropic’s expansion is not just about office space , it’s a statement of intent in the global race for artificial intelligence supremacy.