Elon Musk Grows xAI Offices in Palo Alto

Elon Musk’s xAI artificial intelligence startup is growing in Palo Alto.

The company, based in the tech-savvy California city, has signed two office leases in the city, the Silicon Valley Business Journal reported. The firm leased more than 100,000 square feet at 1510 Page Mill Road from Hudson Pacific Properties, which owns 6 million square feet across 18 Silicon Valley properties. xAI also leased a suite at the nearby 1530 Page Mill Road, a property shared with enterprise automation platform Workato and nonprofit Learning Policy Institute.

Both of xAI’s new offices are located near the company’s first Palo Alto office at 1450 Page Mill Road, owned by Alexandria Real Estate Group, as well as Tesla’s global engineering headquarters at 3000 Hanover Street.

xAI plans to renovate 16,000 square feet of office space at 1530 Page Mill Road, according to permits filed with the city in November cited by the Business Journal. Last month, the company submitted an application to renovate nearly 80,000 square feet at 1510 Page Mill Road to create an open office space. Multiple applications for renovations at the 1450 Page Mill Road office, spanning an entire floor, are also on file with the city.

The Elon Musk-led firm is the latest AI company to grow in Silicon Valley.

In July, AI startup Databricks leased 305,000 square feet in Sunnyvale. Snowflake opened its 30,000-square-foot “Silicon Valley AI Hub” at its Menlo Park headquarters in September. Last month, an unnamed AI-powered aircraft maker backed by tech billionaire and Google co-founder Larry Page signed a lease for 75,000 square feet at a former Fry’s Electronics store in Palo Alto, the Business Journal reported.

Musk’s xAI was founded in 2023 and has raised $10 billion in funding so far to develop large language models, including its flagship generative AI chatbot, Grok.— Chris Malone Méndez