Anthropic Secures Major San Francisco Tower in $111M Deal, Signaling AI Sector's Enduring Urban Footprint
In a bold move signaling both its explosive growth and commitment to its hometown, artificial intelligence leader Anthropic has secured a landmark 25-story office tower in San Francisco's South of Market district. The company confirmed Friday it has signed a lease for the entirety of 300 Howard Street, encompassing over 400,000 square feet, in a deal that stands as one of the city's largest office transactions since the pandemic.
The building was acquired last year by real estate firms for approximately $111.34 million. Anthropic plans to relocate its headquarters to the new tower in 2027, positioning itself just blocks from its current offices and adjacent to the Salesforce Transit Center hub. The expansion provides critical space for an employee base that has swelled to over 2,500, with more than 1,300 currently based in the Bay Area.
Founded in 2021 by former OpenAI researchers focused on AI safety, Anthropic's trajectory has been meteoric. Company spokesperson Danielle Cohen revealed that its revenue run rate skyrocketed from $87 million at the start of 2024 to over $9 billion by the end of 2025. This growth is largely fueled by its flagship chatbot, Claude, and the success of its advanced Opus model in software engineering applications, where it aids developers in generating and refining code.
While less a household name than rival OpenAI, Anthropic has consistently been at the center of industry-defining conversations. The company endorsed California's AI safety bill last year and agreed to a landmark copyright settlement potentially worth $1.5 billion for authors. Its staggering $183 billion valuation—surpassing corporate giants like Pfizer and Uber—was cemented in a September funding round, with reports indicating it is now seeking an additional $10 billion.
"Dario and I were born and raised in San Francisco—it's where Anthropic was founded, and where so much of our story has unfolded," said President and Co-founder Daniela Amodei in a statement. "This expansion is a commitment to the local community and the incredible ecosystem here."
The deal is being closely watched as a barometer for San Francisco's commercial real estate market and the AI sector's physical footprint. The tower, previously occupied by StubHub and Fitbit, represents a significant vote of confidence in the city's downtown core.
Reactions & Analysis
Michael Chen, Tech Analyst at Verge Capital: "This isn't just a real estate play; it's a strategic statement. Anthropic is planting a flag, betting that concentrated talent and collaboration in a physical hub will be a lasting competitive advantage in the AI arms race, even in a remote-friendly era."
Rebecca Shaw, San Francisco Urban Planning Commissioner: "We welcome this investment and the high-quality jobs. However, it must come with a parallel commitment to addressing the housing and transportation pressures such rapid growth creates. The city needs proactive partnerships, not just square footage."
David K., Software Engineer (via TechForum): "So a company that's basically teaching machines to write code is taking a giant tower downtown? The irony is thick. They're celebrating 'local community' while their core product aims to automate the very jobs that built this city. This feels less like growth and more like a victory lap before the disruption hits home."
Arjun Patel, Venture Partner at DeepTech Ventures: "The valuation and physical expansion are two sides of the same coin: immense investor belief in AI's long-term value creation. Anthropic is building the infrastructure—both computational and corporate—to be a permanent leader, not just a flash-in-the-pan research lab."
Reporting by Stephen Council. Contact securely at [email protected] or on Signal at 628-204-5452.