Earlier this year, Boston received a significant opportunity when the renowned AI company Anthropic, known for its Claude application, established a small office in Cambridge. However, a recent report from the New York Times highlighted that Anthropic has now expanded its footprint to New York, leasing a 16-story building in Lower Manhattan intended for 1,000 employees. OpenAI, the organization behind ChatGPT, also has a substantial presence in New York with a 90,000-square-foot office in Soho, although it has yet to secure permanent office space in Boston.
This new development in New York raises concerns about whether Boston’s efforts in the AI space might falter, akin to the defeat of the Celtics during a playoff run while the Knicks celebrated a championship victory.
A glance at Anthropic’s careers page reveals that the company has over 200 job openings in New York, in stark contrast to just five available positions in Boston. OpenAI’s New York operation boasts more than 700 job postings, although some of these allow for remote work arrangements.
The San Francisco Bay Area continues to lead the charge in the AI sector, being home to major firms that are developing the foundational models and technology integral to popular artificial intelligence applications. Nevertheless, during the recent Tech Week conference, Boston's narrative was centered on the idea that the city is poised to re-enter the competitive landscape, particularly in sectors like healthcare, life sciences, finance, and business software with a strong emphasis on AI applications.
The New York Times reported that New Yorkers have a similar strategy guided by their regional strengths in finance, health care, consulting, law, media, and culture. Julie Samuels, president of Tech:NYC, emphasized that their city is a hub for practical applications of AI technology, often seeing businesses turn to New York for insights on what works.
This sentiment parallels Boston's claim to be at the forefront of “applied AI.” Governor Maura Healey’s announcement two years ago about establishing an AI hub aimed at transforming Massachusetts into a leader in applied AI innovation has resonated within the private sector, further echoed by the Mass. AI Coalition this year.
Notably, several prominent AI companies trace their roots to New York. For instance, Whoop CEO Will Ahmed and Suno CEO Mikey Shulman both hail from New York and eventually settled in Boston to further their education—Ahmed at Harvard and Shulman for a Ph.D. in physics.
Boston's advantage lies in its extensive network of prestigious universities, which foster groundbreaking AI research across institutions like Harvard, MIT, WPI, and Olin College. However, this academic environment has not always guaranteed that graduates choose to stay in the region for their entrepreneurial ventures. Research by HubSpot cofounder Brian Halligan indicated that among the top 50 AI companies, 21 have founders with local educational ties, yet only one of those companies—Suno—calls Boston home. However, the local landscape is evolving, with promising newcomers like Blitzy and Lila Sciences making headlines.
The AI Coalition has been actively working to retain talented graduates in the area by providing free office space, computing resources, and facilitating networking and mentoring events for students and recent graduates.
According to Rudina Seseri, founder and managing partner at Boston’s Glasswing Ventures, retaining local talent is crucial for competitive success, emphasizing that Boston need not strive to overshadow New York. The rapid growth of the AI sector suggests that multiple regions can flourish simultaneously, as stated by Columbia Business School professor Angela Lee, who studies entrepreneurship.
Lee noted that the expanding AI market can accommodate various regional hubs, indicating that both Boston and New York bring unique strengths to the table, with many emerging startups benefiting from the resources and networks available in both cities.
