A data-driven healthcare research firm has inked a deal to relocate and expand its headquarters in one of the world's largest artificial intelligence hubs.
Unlearn.AI, a business that analyzes patient health records to accelerate clinical pharmaceutical trials, has inked a deal to lease 17,200 square feet at 303 Second St. in San Francisco. The company previously occupied 3,500 square feet in the city.
“They have 70 employees and are looking to bring on 30 [to] 40 more,” said John Roskos, an executive vice president at JLL who brokered the deal. “This space will allow them to continue growing.”
Its the latest lease from the AI industry in San Francisco, with the sector providing a bright spot for the city's office market. The vacancy rate in San Francisco's South of Market area — home to Unlearn's new office — is among the highest in the city at 26%, according to CoStar data.
Some of the largest leases of late in San Francisco have been inked by companies in the AI industry. ChatGPT maker OpenAI signed a lease for about 200,000 square feet at Mission Rock in October. The month prior, Anthropic, a safety-focused artificial intelligence firm, took over Snap’s former headquarters at 500 Howard St., leasing 247,000 square feet.
Among smaller leases of late, Hive AI leased 57,117 square feet at 100 First St.; Hayden AI leased 41,196 square feet at 460 Bryant St.; Anthropic leased 17,735 square feet at 394 Pacific Ave.; and Tome leased 16,887 square feet at 600 Townsend St.
“AI demand has trickled into all tech sectors,” Roskos said.
That demand is also serving as a boost for the industry that has cut hundreds of thousands of jobs over the past two years in the United States.
Unlearn.AI was founded seven years ago and has fundraised $130 million, most recently closing a $50 million funding round this month.
The AI startup was previously based at 75 Hawthorne St. Its new office is in a 785,000-square-foot building owned by Los Angeles-based Kilroy Realty. High-profile tenants in the building include PlayStation, DoorDash, and Reddit.
San Francisco has emerged as the national hub for artificial intelligence companies, according to a recent study by JLL. The city houses 46% of the country’s AI companies and received $74 billion in funding in 2023, according to the report. This is in large part due to talent pool access with San Francisco home to six major AI research institutions — no other city counts more than three.
There are about 100 AI companies with between five and 50 employees currently scouting office space in the city, according to Roskos.