One of the country’s largest artificial intelligence-powered research labs is coming to South of Market.
Robotics and AI company Medra leased a 38,000-square-foot industrial building at 1301 Folsom Street, where it plans to build what it calls one of the largest autonomous research labs in the U.S., the San Francisco Business Times reported. Local investor Group i acquired the three-story building in 2017 for $12.6 million.
Medra, headquartered at 424 Treat Avenue in the Mission District, develops software that allows scientists to communicate with robots while conducting laboratory work. The robots have sensors for precision and log the work they do, helping scientists understand and tweak their processes, according to Bloomberg.
Late last year, Medra announced a $52 million Series A funding round. The firm intends to use part of the funding to build an autonomous lab with 100 robots.
Medra was attracted to 1301 Folsom because of its suitability for lab operations and can accommodate the team’s growth, a spokesperson told the outlet. By planting a flag in SoMa, Medra will also stay “close to San Francisco’s AI, robotics and life sciences talent and innovation ecosystem,” the company said in a statement.
The Bay Area has become a magnet for venture capital funding, especially when it comes to robotics and AI. In 2024, the region brought in the most VC funding in the world, grabbing nearly $70 billion of the world’s $134.6 billion. VC investment in robotics and drones has grown to a total of $13.6 million as of mid-2025, up from $593,000 in 2016. Of those funds, 57 percent went to AI companies working on robotics, such as Medra.
While manufacturing and robotics companies in the past have established presences in Silicon Valley and the East Bay, San Francisco is emerging as a hotspot for several firms as giants like OpenAI and Anthropic increase their space in the city. Many of these companies moving into town view the proximity to such major AI players as a benefit to setting up camp in San Francisco. — Chris Malone Méndez
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