Silicon Valley shifts to AI and hard tech innovation

San Francisco leads shift to AI hard tech era

In the past, Silicon Valley was all about fun perks, mobile apps and social media. Engineers at big companies like Google and Facebook enjoyed free food, nap pods and even beer at work. This was the Web 2.0 era where building websites and apps was the norm. It was a time of easy money and a relaxed culture.

But those days are gone. Now, Silicon Valley is in a new phase called the “hard tech” era. This shift started with the rise of artificial intelligence. Today, people in tech talk more about neural networks and machine learning than app designs. The cool new goal is not to make a photo sharing app but to build powerful AI that can do things better than humans.

The center of this change is San Francisco. Big AI companies like OpenAI and Anthropic are based there. More and more workers are moving to the city to be part of the action. Tech giants like Google and Meta are no longer hiring as freely as before. In fact, many companies are cutting jobs, especially ones not directly related to AI. Employees with soft skills or humanities backgrounds are being let go in favor of AI experts.

The culture has changed too. Silicon Valley used to lean left politically but now there is a growing group of tech leaders who call themselves “Liberaltarians.” They support some liberal social issues but push back hard against government rules especially around business. They are even investing in defense tech which used to be off limits in the tech world.

Over the last 15 years, the region has seen big ups and downs. We saw huge excitement around crypto, self driving cars and the metaverse and then major crashes. But the arrival of ChatGPT in 2022 changed everything. It proved AI’s potential and brought investors back to San Francisco. Even people who had left for places like Austin and Miami are returning.

These days, tech workers gather in neighborhoods like Hayes Valley now nicknamed “Cerebral Valley” and in coworking spaces like Shack15. They attend events, share ideas and try to get ahead in the fast changing AI world.

Big companies are making moves too. OpenAI took over a huge office once used by Uber. Meta recently invested billions in Scale AI, another major player. The once empty streets of downtown San Francisco are busy again.

Though Silicon Valley’s vibe is different now, more focused and more intense, the excitement is still alive. Startups are building not just software but drones and defense tools guided by AI. The industry is no longer just about making life easier with apps. It is about building the future with powerful new technology.

And according to many in the city, tech is back  just in a very different form.

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