Affordable housing is not on the agenda for the OpenAI Foundation.
Sam Altman shut down any notions of the artificial intelligence giant using charitable funds to build housing in OpenAI’s hometown of San Francisco, the San Francisco Business Times reported.
Altman spoke about the company’s new nonprofit arm, in which the firm has a $130 billion stake, at an event with Golden State Warriors head coach Steve Kerr on Monday.
Board of Supervisors candidate Manny Yekutiel pointed out that the foundation “could build some” housing, but Altman pointed to the astronomical cost of building in the city.
“How much do you think it costs to build affordable housing in San Francisco?” Altman said. “The problem is that it takes $1 million a unit.”
He’s not off base. Building a typical affordable housing unit in San Francisco has been reported at about $377,000 per unit, or roughly $470,000 when land and financing costs are included. Some projects in the city have been far more expensive, with costs reaching up to $1.2 million per unit.
At that high rate, the foundation could build 108,000 units with its $130 billion. At $470,000 per unit, it could pay for 276,000 units. The city is trying to erase an 82,000-unit shortage.
OpenAI has pledged to use the money to fund research to treat and cure diseases and to implement guardrails against AI. Tackling wealth inequality and building isn’t a part of the plan.
“If we could somehow make it so that you could graduate from school and buy a home and start your family on a normal salary, that would have a huge positive impact on society,” he said. “I don’t think either of us can make that happen.”
The growth of AI firms like OpenAI and the need for employees have driven up housing demand — and rents — in the city.
San Francisco must meet its state-mandated requirement of building at least 82,069 housing units by 2031 as part of its housing element. The city’s current plans would only provide for less than half of that number, according to a recent report from the city controller.