$15 billion. Five years. One city.
This week, cloud software giant Salesforce has made a massive commitment in San Francisco that is anything but a routine expansion. It is the world’s largest cloud software company targeting AI dominance.
Salesforce announced plans to invest $15 billion in San Francisco over the next five years, “reinforcing the city’s status as the world’s AI capital.” The timing is apt as the company’s annual Dreamforce conference, which will welcome nearly 50,000 people to San Francisco, runs October 14-16.
The investment will support a new AI Incubator Hub on the Salesforce San Francisco campus, try to grow the AI ecosystem by investing in workforce development and training, and attempt to help companies transform into agentic enterprises.
“We’re investing in the future of San Francisco and leading the next great technology transformation — where humans and AI work together to drive productivity, growth, and meaningful change,” Marc Benioff, Chair and CEO of Salesforce, said in the announcement.
Betting on AI agents
The company projects revenue of $51.9 billion by 2028, which means a $3.6 billion earnings lift from here. The bet is that AI agents, not concrete and cooling towers, get them there faster.
Early signals help the case. Internal usage of Agentforce cut customer service escalations from 10,000 to 5,000 out of 36,000 weekly queries. That is a productivity pop customers can feel.
Salesforce is not just building, it is leaning in to sell. Plans to hire 2,000 additional salespeople specifically for AI products signal conviction, and 1,000 customers already signed up for Agentforce last month.
Beyond technology, the investment includes a new $39 million pledge to education and healthcare, bringing Salesforce and the Benioffs’ total contributions to over $1 billion. It also tightens ties with the city they have called home since 1999.
Vital location
The deeper shift is philosophical. Instead of racing to build data centers, Salesforce is building AI agents that can run business processes on their own. Survey data reveals that 93% of IT leaders plan to deploy autonomous agents within two years.
The San Francisco location is not just symbolic, it is strategic. The city hosts 42% of US AI companies concentrated in the Bay Area, and AI firms leased nearly 1 million square feet of office space between 2020 and 2023.
What happens next could set the pace for the entire field. Salesforce’s approach, build on others’ infrastructure while advancing specialized AI agents, is a live test of whether focus can beat sheer spending. If it works, this contrarian playbook becomes a template for competing in the AI era without burning hundreds of billions on capex.
AI may be the technology of the decade, but a new $500 million initiative aims to keep humans at the heart of it.
The post Salesforce Makes $15B AI Investment in San Francisco appeared first on eWEEK.
No Responses