Silicon Valley or Bust? The International AI Founder’s Guide to America’s $851 Billion Gold Rush

The artificial intelligence landscape in the United States is experiencing explosive growth, creating unprecedented opportunities for international firms seeking to establish or expand their presence in the world’s most dynamic AI market. The US artificial intelligence (AI) market size is estimated to surpass around USD 851.46 billion by 2034 from USD 146.09 billion by 2024 with a CAGR of 19.33%. This growth is reshaping traditional technology hubs and creating new centers of AI excellence nationwide.

International AI companies are finding remarkable success in this evolving landscape, with cross-border AI partnerships reaching record levels in 2024. Global venture funding in 2024 edged above 2023’s totals, with AI showing the most significant leap in amounts year to year. Close to a third of all global venture funding went to companies in AI-related fields, making artificial intelligence the leading sector for funding. Funding to AI-related companies reached over $100 billion, up more than 80% year over year from $55.6 billion in 2023.

The rise of generative AI has democratized access to advanced capabilities, while edge computing and specialized AI chips have created new market categories and client demands. In 2024, global venture capital funding for generative AI reached approximately $45 billion, nearly doubling from $24 billion in 2023.

The AI Boom: Setting the Stage

The US artificial intelligence landscape has matured significantly beyond the initial hype cycle, characterized by sophisticated enterprise implementations and evolving regulatory frameworks. The global artificial intelligence market size was valued at USD 233.46 billion in 2024. The market is projected to grow from USD 294.16 billion in 2025 to USD 1,771.62 billion by 2032, exhibiting a CAGR of 29.2% during the forecast period. North America dominated the artificial intelligence market with a market share of 32.93% in 2024.

Key market indicators for 2025 showcase unprecedented growth:

• AI startups received 53% of all global venture capital dollars invested in the first half of 2025, according to new data from PitchBook. That percentage jumps to 64% in the US. AI startups also comprise 29% of all global startups funded, and nearly 36% in the US.
• Global venture funding ticked up year over year in Q2 2025, reaching $91 billion, with a greater concentration of capital into the largest funding rounds compared to a year ago. H1 2025 posted the strongest half-year for venture capital since the first half of 2022. A total of $205 billion was raised through mid-year, up 32% from H1 2024
• While the VC market recorded its strongest quarter since Q1 2022, the growth was driven by a $40 billion deal for an AI company. VC-backed companies raised $80.1 billion in Q1 2025, a 28% quarter-over-quarter increase.
• In 2024, 35% of businesses have adopted AI; 90% are using AI to gain a competitive edge.

Major AI Hubs in the United States

Silicon Valley: The Global AI Capital

Silicon Valley remains the uncontested epicenter of AI innovation, offering unparalleled access to venture capital, world-class talent, and cutting-edge research institutions. Silicon Valley has 35% of all AI engineers in the US, according to the report. Seattle is second, with 23%. The region’s ecosystem creates a unique environment where international AI firms can collaborate with leading researchers, access specialized hardware, and connect with enterprise clients seeking breakthrough solutions.

The presence of tech giants like Google, Meta, and OpenAI, combined with Stanford University’s AI research programs, creates a continuous pipeline of innovation and talent exchange. The largest funding rounds this past year went to companies in the AI sector — not only Databricks, OpenAI, and xAI, but also Waymo and Anthropic raised funding of at least $4 billion, or much more.

Challenges

Operating in Silicon Valley presents distinct challenges that require careful navigation by international AI firms. Competition isn’t limited to client acquisition—firms must compete for engineering talent with established tech giants and well-funded startups. With a software engineer making $180,570 on average and data scientists earning about $143,216, it’s clear why many chase their Silicon Valley dreams here. Despite the high cost of living—median home prices hitting $1.5 million and rents averaging $4,800—it remains a magnet for those eager to work at the Bay Area’s tech giants.

Key Statistics

• Silicon Valley aggregate market cap hit an all-time high of $14.3 trillion in February 2024
• Home to over 6,600 tech companies generating an astounding $275 billion in tech GDP annually.
• Silicon Valley received $30 billion in venture capital funding in 2024, with nearly two-thirds going into “megadeals” of more than $100 million each.
• San Jose (142.4 new AI jobs listed per 100,000 residents) led the way in the first quarter of 2024 among cities with at least 500,000 residents.
• Silicon Valley is home to 31% of the nation’s “unicorns” (private companies valued at $1+ billion); San Francisco has another 26%
• Together, the region’s 276 unicorns are worth nearly $1 trillion.
• Investments in generative AI companies saw a remarkable 220% increase over the previous year.
• OpenAI was awarded a $157 billion valuation. Databricks was valued at $62 billion in the year’s largest venture deal, a $10 billion round.

Sources: Joint Venture Silicon Valley, Vasro, Axios, Crunchbase

International Company Success Story

Anthropic (UK founders) Co-founded by former OpenAI executives Dario and Daniela Amodei, Anthropic raised $3.5 billion in a Series E round that valued the startup at $61.5 billion in March 2025. The company hit $3 billion in annualized revenue in late May 2024 and has become a leader in AI safety with its Claude AI assistant. Anthropic leads the AI industry in talent retention with an 80% retention rate and is successfully poaching engineers from OpenAI and DeepMind at an 8:1 and 11:1 ratio respectively.

Seattle: The AI Cloud Infrastructure Hub

Seattle is second, with 23% of all AI engineers in the U.S. Seattle has positioned itself as the center for cloud-based AI services, leveraging the presence of major cloud providers Microsoft and Amazon. The city’s leadership in cloud computing, combined with its innovative culture and access to skilled talent, creates an ideal environment for AI firms developing scalable, cloud-native solutions.

Seattle (74.4 new AI jobs listed per 100,000 residents) led the way in the first quarter of 2024, demonstrating its strength as an AI talent hub. The Seattle region is home to Microsoft and Amazon, which power much of the cloud computing infrastructure that supports AI development.

Challenges

The competitive landscape in Seattle requires AI firms to differentiate themselves in a market dominated by established cloud providers. Seattle often gets criticized for not having enough homegrown money to help fuel the next great tech startups, especially relative to the density of talent. Building partnerships with major cloud platforms while maintaining independence can be challenging, requiring careful strategic positioning.

Key Statistics

• Microsoft’s AI business is on track to surpass an annual revenue run rate of $10 billion next quarter, the fastest company in Microsoft’s history to reach this milestone.
• Microsoft reported per-share earnings of $3.30, on revenue of $65.6 billion, both ahead of analyst expectations.
• Server products and cloud services revenue increased 23%, with Azure and other cloud services revenue growth up 33%
• Amazon’s market share in the worldwide cloud infrastructure market amounted to 31 percent in Q3 2024, ahead of Microsoft’s Azure platform at 20 percent.
• Global cloud infrastructure service spending grew $15.7 billion or 23 percent compared to Q3 2023, bringing total spending to over $84 billion for the three months ended September 30
• Seattle (74.4 new AI jobs listed per 100,000 residents) led the way in the first quarter of 2024
• It’s where about half of all Big Tech engineers across the country are based, with Seattle second at a little more than 10% of Big Tech engineers.
• Home to Microsoft and Amazon, powering much of the cloud computing infrastructure that supports AI development

Sources: Microsoft via Axios, Statista, SignalFire via GeekWire

International Company Success Story

Anthropic (Expanding to Seattle) Despite being founded in San Francisco, Anthropic has been rapidly expanding its Seattle workforce, leveraging the city’s AI talent pool. The company has hired key technical staff including Andy Stewart (co-founder of Seattle startup Olis Robotics), Sophia Porter (former Blue Origin), Tim Sullivan (former Microsoft VP), and Mitchell Wortsman (University of Washington). Amazon’s $8 billion total investment in Anthropic includes making AWS its primary cloud provider.

New York City: The AI Finance Hub

New York (10%), Boston (5%), and Los Angeles (4%) follow in terms of AI engineer concentration. New York City has emerged as the premier destination for AI firms specializing in financial services, offering unparalleled access to Wall Street institutions and regulatory expertise. The city’s unique combination of financial markets, regulatory bodies, and technology infrastructure creates an exceptional environment for firms developing AI solutions for trading, risk management, and regulatory compliance.

The presence of major financial institutions, from investment banks to fintech startups, provides a diverse client base seeking sophisticated AI capabilities. The city’s 24/7 trading environment and global economic connections make it ideal for firms developing real-time AI systems and cross-border financial technology solutions.

Challenges

AI firms entering NYC’s financial sector must navigate complex regulatory requirements and establish credibility within the conservative financial industry. Building trust with financial institutions requires extensive security certifications, compliance documentation, and proven track records with sensitive financial data. The high cost of operations and talent in NYC also presents significant challenges for international firms.

Key Statistics

• The global AI market for software solutions led with 35.0% of global revenue in 2024, valued at approximately $82 billion.
• The advertising & media segment led the AI market and accounted for the largest revenue share in 2024
• In 2024, for the first time, more mega deal dollars went to AI companies ($73B) than non-AI companies ($47B).
• The total number of AI companies funded was 2,049 in 2024, with U.S.-funded companies accounting for 1,143 of the AI companies.
• New York (10%) of all AI engineers in the US, making it the third-largest concentration after Silicon Valley and Seattle
• Major financial institutions are increasingly adopting AI for trading algorithms, risk assessment, and regulatory compliance.
• The financial services industry is experiencing rapid AI adoption, with approximately 42% of large enterprises having implemented AI in their business operations.

Sources: Grand View Research, SVB State of Markets, Fortune Business Insights

International Company Success Story

Clarity AI (Spain) Clarity AI, a leading sustainability tech company from Spain, leverages advanced AI to provide environmental and social insights. The company serves investors managing over $60 trillion in assets, including firms like Invesco, Nordea, Lazard Asset Management, and Santander, with integrations into platforms like BlackRock’s Aladdin.

Boston: The AI Research Hub

Boston (5%) of all AI engineers in the US, Boston combines world-class academic research with a thriving technology ecosystem, making it ideal for AI firms focusing on research applications, enterprise AI, and advanced technology development. The city’s concentration of universities, research institutions, and technology companies creates a unique environment where international AI firms can access cutting-edge research while developing practical applications for complex industries.

The presence of MIT’s Computer Science and Artificial Intelligence Laboratory (CSAIL), Harvard’s AI initiatives, and numerous technology companies creates continuous opportunities for collaboration and talent exchange. Boston’s reputation as a global research center helps international firms build credibility and establish partnerships with leading academic institutions.

Challenges

Building credibility within Boston’s research-oriented community requires significant investment in R&D and academic partnerships. The market demands deep technical expertise and proven research capabilities, which can require substantial resources for international firms. Competition for AI talent is intense, with firms competing against prestigious universities, established research institutions, and well-funded startups.

Key Statistics

• The Artificial Intelligence (AI) software market size was valued at US$122 billion in 2024, growing at a CAGR of 25%
• Generative AI will be the fastest-growing AI framework with a 34.5% CAGR over the market forecast period.
• The AI software market size will reach US$467 billion by 2030
• Boston (5%) is home to a significant proportion of all AI engineers in the US, representing a concentrated hub of specialized talent.
• Home to MIT’s Computer Science and Artificial Intelligence Laboratory (CSAIL), Harvard’s AI initiatives, and over 100 technology companies

The region has a intense concentration of AI startups focusing on enterprise applications and research.

• Significant venture capital presence with a focus on AI and deep tech investments
• The area thrives on its highly educated workforce, where nearly 25% hold graduate or professional degrees.

Sources: ABI Research, SignalFire via GeekWire, Vasro

Emerging AI Hubs

Austin: The AI Startup Capital

Austin has emerged as a dynamic center for AI startups and emerging technologies, transforming from a regional tech hub into a national magnet for AI innovation. Companies and employees alike are moving to areas with lower costs of operating and living over the past few years, and there are now several cities outside of traditional technology meccas, such as the San Francisco Bay Area and Seattle, that are considered growing tech hubs.

The city’s unique combination of entrepreneurial spirit, lower operational costs, and growing talent pool has created an environment where international AI firms can establish operations, test new markets, and scale rapidly. Austin sits at 19% of the average income for yearly rent, while San Francisco demands 25% of the average income for annual rent, making it an attractive alternative for AI companies.

Key Statistics

• The market for AI products and services could reach between $780 billion and $990 billion by 2027, according to Bain & Company.
• Austin sits at 19% of the average income for yearly rent, compared to higher costs in Silicon Valley (25%)
• No state income tax, and living costs are approximately 35% lower than in Silicon Valley.
• A growing technology sector with major companies like Tesla, Oracle, and Samsung establishing operations
• Strong startup ecosystem with numerous AI-focused accelerators and incubators
• The demand for software development roles specializing in AI, machine learning, and cybersecurity is projected to surge across tech hubs in 2024
• Cities outside traditional technology meccas now offer high-tech salaries with a lower cost of living.

Sources: Bain & Company, CIO, JobSolv

Los Angeles: The AI Entertainment Hub

Los Angeles (4%) of all AI engineers in the U.S. Los Angeles has established itself as a center for AI applications in entertainment, media, and content creation. Dubbed Silicon Beach, the Westside region of Los Angeles houses more than 500 technology companies and startups. Companies such as Google, Facebook, Netflix, Amazon, Apple, YouTube, Buzzfeed, and Salesforce have all opened offices in the area.

The presence of major entertainment companies and content creators provides opportunities for AI firms developing solutions for media production, content generation, audience analytics, and creative AI applications.

Key Statistics

• The Westside region of Los Angeles (Silicon Beach) houses more than 500 technology companies and startups.
• Los Angeles (4%) has the highest concentration of all AI engineers in the US, with a growing concentration in entertainment and media applications.
• Major entertainment companies are driving AI adoption in media production, content creation, and audience analytics.
• Growing focus on AI applications in gaming, virtual reality, and augmented reality industries
• Companies such as Google, Facebook, Netflix, Amazon, Apple, YouTube, Buzzfeed, and Salesforce have all opened offices in the area.
• Home to universities including UCLA, USC, and Caltech, making it a hot spot for talent recruitment with strong STEM programs
• Strong integration of AI in the entertainment industry, with applications ranging from content generation to post-production automation

Sources: SignalFire via GeekWire, CIO

Miami: The AI Latin America Gateway

Miami has become a strategic hub for AI firms targeting the US and Latin American markets, offering unique opportunities for international companies specializing in multilingual AI, cross-cultural applications, and emerging market solutions. The city’s position as a bridge between North and South America, combined with its growing technology sector, creates opportunities for AI firms to develop specialized solutions for diverse markets.

The presence of major international corporations and a growing fintech ecosystem provides a robust client base for AI applications in financial services, logistics, and global trade. Miami’s multicultural environment also creates opportunities for firms developing AI solutions that work across languages and cultural contexts.

Key Statistics

• Growing technology sector with international focus and strong Latin American connections
• Strategic location for companies serving both the US and Latin American markets
• Multicultural environment supporting the development of diverse AI applications
• Increasing venture capital presence with a focus on international expansion

US Market Entry Strategies for International AI Firms

The US market offers various entry paths for international AI firms, each with distinct advantages depending on your technology focus, target market, and growth objectives. Understanding these options is crucial for developing an effective expansion strategy that aligns with your AI capabilities and business goals.

Virtual Office Solutions

For AI companies testing the market or operating with distributed teams, virtual office solutions provide a professional US presence without the overhead of physical space. This option is particularly effective for AI firms offering cloud-based solutions and operating with remote development teams, providing credibility while maintaining operational flexibility.

Find out more about Virtual Offices in the USA

Entity Setup and Management

Establishing a US legal entity provides comprehensive market presence and is often required for government contracts and enterprise clients with strict vendor requirements. This approach offers maximum control over operations and intellectual property protection, which is crucial for AI firms developing proprietary algorithms and handling sensitive data.

Find out more about setting up a US Entity

Employment Options

Professional Employer Organization Services (PEO+) When expanding with a US entity, firms can manage their US AI talent through PEO+ services. These solutions help manage HR administration, payroll, and benefits while maintaining direct employment relationships with specialized AI researchers and engineers. This approach is particularly valuable for AI firms building diverse technical teams with varying skill sets and compensation requirements.

Find out more about PEO+

Employer of Record Services (EOR) EOR services provide a turnkey solution for hiring US AI talent without establishing a US entity, perfect for testing new markets or rapidly scaling technical teams. Under this model, the EOR legally employs the workers while you maintain day-to-day operational control. This approach is especially valuable for AI firms needing to quickly access specialized talent or establish regional development centers without the complexity of entity setup.

Find out more about EOR

The Rising Stakes: Emerging US AI Compliance Challenges

The US AI landscape is becoming increasingly complex from a regulatory perspective, with several emerging trends that multiply compliance risks for international firms.

AI Governance and Transparency

Biden’s safety-focused AI executive order has largely fallen out of favor this year in Washington, D.C. — the incoming President-elect, Donald Trump, announced plans to repeal Biden’s order, arguing it hinders AI innovation. Despite changing federal approaches, state and local regulations continue to evolve:

• Algorithmic auditing requirements for AI systems affecting employment, housing, and credit decisions
• Mandatory disclosure of AI decision-making processes to affected individuals
• Regular bias testing and fairness assessments for AI applications
• Documentation of human oversight mechanisms and intervention protocols

Data Privacy and AI Training

The intersection of AI development and data privacy creates new compliance challenges:

• Restrictions on using personal data for AI training without explicit consent
• Requirements for data minimization and purpose limitation in AI applications
• Cross-border data transfer limitations affecting international AI development
• Emerging rights to explanation and algorithmic decision appeals

Export Control and Technology Transfer

International AI firms face increasing scrutiny regarding technology transfer and export controls:

• ITAR restrictions on AI systems with defense applications
• EAR classifications for advanced AI algorithms and hardware
• Foreign investment review for AI acquisitions and partnerships
• Restrictions on sharing AI research with certain foreign entities

Why US Specialists Matter: The Foothold America Advantage

In this increasingly complex environment, generic global service providers cannot provide the depth of US-specific expertise required for AI companies. Foothold America stands apart because:

We understand AI-specific compliance requirements – Our team stays current with rapidly evolving AI regulations, from algorithmic fairness laws to data privacy requirements that specifically impact AI development and deployment.

We provide specialized AI talent acquisition support – Silicon Valley has 35% of all AI engineers in the US, according to the report. Seattle is second, with 23%. Finding qualified AI researchers, machine learning engineers, and data scientists requires an understanding of both technical requirements and visa processes for international talent.

We offer AI-focused risk management. Our compliance experts help navigate the unique risks facing AI companies, from intellectual property protection to liability issues related to AI decision-making.

We maintain relationships with AI ecosystem partners – Our connections with research institutions, venture capital firms, and technology accelerators help AI companies build the partnerships crucial for US market success.

Conclusion: The Value of US Expertise

For international AI firms navigating America’s dynamic and increasingly regulated landscape, the right expansion partner can make the difference between breakthrough success and costly compliance failures. AI investment in 2024 outpaced anything we’ve seen before, and H1 2025 posted the strongest half-year for venture capital since the first half of 2022.

By choosing Foothold America—where real US AI expansion experts, not generic global platforms, handle your most critical business needs—AI companies can focus on innovation and growth while substantially reducing regulatory and operational risks.

The most successful AI companies recognize that US market entry is not a commodity service best handled by the lowest-cost provider. Instead, it requires specialized expertise that understands both the tremendous opportunities and unique challenges of the American AI market. With the US AI market projected to reach $851.46 billion by 2034 and the stakes of compliance failures higher than ever, partnering with America’s AI expansion experts has never been more critical.