AI was expected to eliminate jobs — but the reality is quite the opposite, with AI companies sparking a hiring spree and breathing new life into Silicon Valley's office spaces.
Many have long warned that artificial intelligence would lead to massive unemployment as machines replace human workers. But here’s where it gets controversial: instead of cutting jobs, AI firms are aggressively recruiting large numbers of employees, fueling a surprising revival in office demand across key tech hubs.
Take StackBlitz, an AI startup led by CEO Eric Simons, which recently secured a sleek new office in San Francisco’s prestigious Levi’s Plaza. The space is currently being outfitted, with staff expected to move in by January. Just a few years ago, locking down a high-end office there would have seemed unusual—especially after the pandemic pushed many Silicon Valley companies to shutter their physical workspaces and embrace remote work. This shift caused a significant slump in the commercial real estate market, with vacancy rates soaring to new heights.
However, the ongoing AI boom is rewriting that narrative. While generative AI is often described as a technology poised to automate countless tasks — sparking fears of widespread job cuts among industry leaders — the actual hiring trends within AI companies tell a different story. Instead of shrinking, their workforce numbers are swelling rapidly. These firms are employing experts who specialize in leveraging AI tools, contradicting the assumption that AI would decrease human labor needs.
Commercial real estate analysts at Colliers explain this phenomenon plainly: "AI companies are expanding their office leases because they’re actively recruiting." According to Colliers, generative AI is not only transforming how work is done but is also creating new jobs, which in turn drives demand for office space in urban centers with skilled talent pools.
A recent Colliers report underscores the tech industry’s growing influence as a powerhouse in the US office market. In Silicon Valley, the average size of AI-related office leases has steadily increased over the past three years. In fact, so far in 2025, lease sizes have hit their highest levels since 2020, a period that marked the beginning of significant pandemic-related disruptions.
Looking at the numbers, since 2020 AI and AI-infrastructure companies (excluding giants like Apple, Alphabet, and Meta) have signed leases totaling 5.2 million square feet in Silicon Valley alone. Remarkably, the leasing activity in 2025 has already surpassed the total for all of 2024, which was 1.3 million square feet.
This uptick in office space leasing isn’t random. Areas like Sunnyvale have seen growth from pure AI companies, while Fremont is becoming a hub for AI-infrastructure firms, especially those specializing in robotics and advanced manufacturing. Many of these players already operate locally but are expanding rapidly, signaling a robust, specialized labor market.
So, what's the big takeaway? Predictions about an impending AI-driven job massacre should be taken with caution. If AI companies, the most direct beneficiaries of automation technology, are actively growing their human workforce, it’s quite plausible that other sectors will follow a similar path.
And this is the part most people miss: AI's impact on jobs may not be a straightforward story of replacement but rather one of transformation and creation. Could this hiring boom challenge the dominant narrative about AI job loss? What do you think — are we overlooking the less obvious ways AI could reshape employment? Share your thoughts and let’s start a conversation.
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