San Jose and San Francisco rank at the top — #1 and #2 respectively — as best U.S. metros for AI development, according to a new study from Hubble.
With AI's adoption rate now faster than that of the PC or the internet, the study set out to identify which U.S. metros are best positioned for the AI economy.
The study scored 67 metro areas across five areas (innovation capacity, talent pipeline, tech workforce strength, enterprise innovation footprint, and tech company activity) and grouped the top 20 into four tiers of AI sector readiness.
In many ways, Northern California is where generative AI was born, the report states. Many patents in machine learning, deep learning and natural language processing that are foundational to AI first started as concepts within the region's research labs and startups. Tech is the region's backbone, providing it with a natural head start in the global AI race that sets it apart from all other regions.
Metro San Jose spearheads much of the behind-the-scenes of artificial intelligence with operations from AI hardware companies such as Micron and Arm, as well as AI development efforts of global companies such as Adobe and Cisco, the report notes. In the ranking, San Jose earned the top spot, scoring high across metrics like AI and machine learning patents; share of STEM graduates; tech employment density; and R&D center density.
San Jose and San Francisco form the most important AI region in the country. Downtown San Francisco is home to OpenAI, Anthropic and Perplexity AI, translating into an unrivaled AI headquarters of density and capital flow, according to the report. San Francisco scored just behind San Jose in terms of AI patents per capita and STEM graduate share.
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