In San Francisco’s A.I. Era, Even $180,000 Tech Salaries Are No Longer Enough
As OpenAI and Anthropic prepare to go public, tech workers making six figures are grousing that they cannot compete with the new A.I. elite. Some doubt they can afford to stay.
Katrine Razniak, 27, arrived in San Francisco in 2022 as a recruiter at LinkedIn, earning $70,000 a year. Her annual salary soared to $180,000 when she joined the software company Rippling to lead a team of account managers. Her partner, Adam Woodbury, 39, moved to the city in 2021 and earns $185,000 as a software engineer.
These days, even those six-figure salaries are no longer enough in San Francisco.
When Ms. Razniak and Mr. Woodbury tried to find a one-bedroom apartment for under $5,000 a month this spring, they struck out. They looked at around 30 properties over three months, but all were too expensive and too in demand. At one listing for $5,200 a month, they found 30 people had added their names to a sign-up sheet within an hour of the open house.
They ended the search. But even if they had found a place, a question lingered: whether a city where groceries and dinner with friends had become sources of financial concern was somewhere they could build a future.
“I don’t feel completely hopeless, but I don’t think I can stay in S.F.,” Ms. Razniak said. Mr. Woodbury added, “At some point, there was a slow transition where we both realized it just didn’t make any sense.”
Ms. Razniak and Mr. Woodbury are not struggling by any conventional measure. But as a wave of artificial intelligence wealth is set to deluge San Francisco, even young tech workers who came to the city chasing the Silicon Valley dream have started to say an affordable future feels increasingly out of reach.
That’s because as the A.I. companies OpenAI and Anthropic — both with headquarters in San Francisco and valued at nearly $1 trillion — prepare to go public, an A.I. elite has emerged that can outspend other tech workers. The two companies, along with Elon Musk’s newly public SpaceX, could mint more than 20 new billionaires among current and former employees, according to an analysis by Sacra, a private markets research firm.
