How San Francisco staged a surprising comeback

Whenever a global economic transformation takes place, a single city usually drives it forward. Ghent, in modern-day Belgium, was at the core of the burgeoning global wool trade in the 13th century. The first initial public offering took place in Amsterdam in 1602. London was the financial centre of the first wave of globalisation during the 19th century. And today that city is San Francisco.

California’s commercial capital has no serious rival in generative artificial intelligence (AI), a breakthrough technology that has caused a bull market in American stocks, and which many hope will power a global productivity surge. Almost all big AI startups have their headquarters in the Bay Area, which includes San Francisco and Silicon Valley (largely based in Santa Clara County, to the south). OpenAI is there, of course; so are Anthropic, Databricks and Scale AI. Tech giants, including Meta and Microsoft, are also spending heavily on AI in the city. According to Brookings Metro, a think-tank, last year San Francisco accounted for close to a tenth of generative-AI job postings in America, more than anywhere else. New York, with four times as many residents, was second.