San Francisco, home to OpenAI and Anthropic, is struggling economically despite its status as the world's AI capital.
The city's housing market, fueled by luxury buyers, is soft in areas with poor views, with prices down 15% since 2022.
Real rents are also down, and some neighborhoods are experiencing a full-blown correction.
The city's economy is weak, with a 13% decline in employment in the tech industry and nearly 35% of offices remaining vacant.
The mayor is trying to make the city welcoming to businesses, but the "deep state" continues to impose costs, and people on moderate incomes are leaving.
The AI revolution could create more millionaires, but a proposed tax on billionaires could accelerate the outflow from the state.
