$1 billion synthetic intelligence firm Replit abandons San Francisco for the Bay Space Peninsula

SAN FRANCISCO (KGO) – It is this industry that is expected to contribute to the revitalization of San Francisco by attracting the major players in artificial intelligence to the city center.

But on Monday, Replit, an AI company valued at over $1 billion, announced its withdrawal from the city.

Despite the move, Replit says it won’t go far.

They just move down the peninsula to Foster City.

“A single company is not a trend. That is my opinion,” said Ahmed Banafa.

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Banafa is a technology expert at San Jose State University.

He says the move doesn't change the fact that San Francisco remains the undisputed AI capital – not just here in the Bay Area, but around the world.

It's not clear how many employees Replit has, but Banafa says he would be concerned if larger companies like OpenAI decided to leave.

“They're called anchor companies that everyone cares about. But when you have companies that are just starting out or new to the field, there are thousands of AI companies,” Banafa said.

Jim Wunderman, president and CEO of the Bay Area Council, shared this view.

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Because the Bay Area economy largely functions as a single unit, San Francisco will still benefit from Replit's proximity, Wunderman says.

“The fact that a company is in the middle of the action in San Francisco itself, in Silicon Valley, in San Jose or in San Mateo County, each has its own clear advantages. But the company's location also benefits those outside of that region,” Wunderman said.

But leaving San Francisco is only part of the story, said the company's CEO, who explained his reasons in a thread on X.

It states, among other things:

“The 'why' we're leaving is boring, sad, and predictable (crime, dysfunction, etc.), so instead let me tell you why we chose Foster City.”

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In the rest of his article, he describes what he finds attractive about the city on the peninsula.

Namely the safe environment, the ideal location and the high standard of living.

Foster City officials say they are happy about this and hope that more companies will follow in Replit's footsteps.

“We are a prime location for offices and we have this technology center, this biotechnology center, all coupled with the beautiful residential and recreational amenities that the city has to offer,” said Marlene Subhashini, deputy city manager of Foster City.

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