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San Francisco, AI capital of the world, is an economic laggard

economist.com

11–20 of 51 posts

Re: San Francisco, AI capital of the world, is an economic laggard

#11

Weird, I thought AI was going to create so much economic surplus that we wouldn’t know what to do with it. What happened?

Please read the actual article instead of blindly responding to the title.

To be fair, the article hardly says anything more than "the middle class of the city has hollowed out".

Re: San Francisco, AI capital of the world, is an economic laggard

#12
How I see SF : I have 200mn dollar worth of shares of an AI company. I’ll buy it from you for 200mn worth of shares of an ad agency. We both would however need to turn these ‘assets’ into cash from banks to buy groceries. The banks don’t rate these very highly. So we are worth maybe 5mn if we consider book value.

Re: San Francisco, AI capital of the world, is an economic laggard

#13
Anybody who has tried to rent an apartment in SF in the past 6 months knows that the city is rebounding fast - avg rents are skyrocketing again and there are lines out the door for 1/2bds. People are locked-in to their covid specials that they outgrew, but can't afford to leave. I watched some friends offer to pay 12 months of rent up-front in cash for a place and still got outbid by another offer.

I honestly disagree with this article - it seems to be conflating "economic activity" with extremely high-end real estate sales data in certain neighborhoods. The city feels much more alive in the past 12 months than it was previously, and there is a lot more energy and public events. If there's anything specific to complain about, it's that the AI boom has led to the 996+ crowd staying inside and not contributing much to the local scene, but honestly that's probably fine with everyone involved.

Re: San Francisco, AI capital of the world, is an economic laggard

#14

Earlier quoted context omitted.

It is happening, just as planned and predicted. Last I checked every so-called AI company is swimming in cash, and so are their founders and leaders. You didn’t think the economic surplus would be evenly distributed, did you?

Swimming in borrowed or imaginary cash without any hope of paying it back in the foreseeable future.

Investors are people who just literally hand you cash, its not imaginary

Re: San Francisco, AI capital of the world, is an economic laggard

#15
post #7

Earlier quoted context omitted.

It is happening, just as planned and predicted. Last I checked every so-called AI company is swimming in cash, and so are their founders and leaders. You didn’t think the economic surplus would be evenly distributed, did you?

Some people said in their manifestos that AI was going to be Open and democratized and would benefit all of humanity. It was 100% a rugpull but charitably not quite 100% predictable.

What people?

What do you mean by "open"?

By "open" did those people mean "free as in beer"?

What does rugpull mean in this context?

Re: San Francisco, AI capital of the world, is an economic laggard

#16

Weird, I thought AI was going to create so much economic surplus that we wouldn’t know what to do with it. What happened?

Please read the actual article instead of blindly responding to the title.

I did read it, what do you think I missed? The article very clearly and explicitly made the point that despite huge speculative funding for an influx of AI startups, San Francisco’s economy isn’t doing all that well. Which I can confirm, as a longtime and current San Francisco resident.

Re: San Francisco, AI capital of the world, is an economic laggard

#17
post #13

Anybody who has tried to rent an apartment in SF in the past 6 months knows that the city is rebounding fast - avg rents are skyrocketing again and there are lines out the door for 1/2bds. People are locked-in to their covid specials that they outgrew, but can't afford to leave. I watched some friends offer to pay 12 months of rent up-front in cash for a place and still got outbid by another offer. I honestly disagre…

Every sane and persons with a personality/hobby/soul I know who isn’t rotting away at their job, or a career employee at some south bay company they plan to retire from have all left SF for abroad, SoCal, or NYC.

My hunch is the people that are competing for housing are mostly new AI sector transplants, who will do the same thing that has ruined the city to begin with. Do nothing to support the local community, spend all their time in Hayes Valley and Marina, buy a Tesla or Porsche that they can drive on the 280 to San Jose, Monterey, Napa - then return to the city to order doordash before trading crypto until they fall asleep and repeat.

I have a few friends who are still stuck in SF and they say the city feels the most soulless and rude it’s ever felt. It’s actually made one of my friends turn to anti-depressants as he’s really struggling. He vents to me a lot about how he doesn’t feel like he can connect or talk to anyone anymore, not even baristas at a coffee shop, because everyone has become so anemic.

Re: San Francisco, AI capital of the world, is an economic laggard

#18
post #7

Earlier quoted context omitted.

Some people said in their manifestos that AI was going to be Open and democratized and would benefit all of humanity. It was 100% a rugpull but charitably not quite 100% predictable.

What people? What do you mean by "open"? By "open" did those people mean "free as in beer"? What does rugpull mean in this context?

OpenAI was originally founded on the parent's concepts, but obviously that changed at some point.

Currently, Elon is suing Altman because Altman turned it for profit. Oddly, in that Elon is taking the moral road?

Re: San Francisco, AI capital of the world, is an economic laggard

#19
post #13

Anybody who has tried to rent an apartment in SF in the past 6 months knows that the city is rebounding fast - avg rents are skyrocketing again and there are lines out the door for 1/2bds. People are locked-in to their covid specials that they outgrew, but can't afford to leave. I watched some friends offer to pay 12 months of rent up-front in cash for a place and still got outbid by another offer. I honestly disagre…

Every sane and persons with a personality/hobby/soul I know who isn’t rotting away at their job, or a career employee at some south bay company they plan to retire from have all left SF for abroad, SoCal, or NYC. My hunch is the people that are competing for housing are mostly new AI sector transplants, who will do the same thing that has ruined the city to begin with. Do nothing to support the local community, spend…

Interesting that SoCal becomes an option for these people. What’s the draw with that move?
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