Roy Lee, CEO of Cluely, an AI startup that develops software for job interviews and virtual meetings, rented eight upscale apartments for his employees in a luxury high-rise just a minute’s walk from the company’s office.
“Going to the office should feel like you’re walking to your living room, so we really, really want people close,” Lee told The New York Times on Thursday. Monthly rents in the 16-story building range from $3,000 to $12,000.
The controversial AI startup has raised $15 million in earlier funding rounds and previously offered engineers compensation packages of up to $1 million.
Monthly Rent Stipends Offered
Flo Crivello, CEO of the AI startup Lindy, gives his roughly 40 employees a $1,000 monthly rent stipend if they live within a 10-minute walk of the company’s office. “People are so much happier and healthier when they live close to work,” Crivello told The New York Times. “This makes them stick around longer, perform better and work longer hours.”
Rent Growth Leads Nation
San Francisco saw the nation’s sharpest annual increase in two-bedroom rents, which jumped 17.1%, while one-bedroom rents rose 10.7%, the third-highest gain, according to a September report from Zumper. The average rent in the city reached $3,315 per month, just below New York City’s $3,360.
Compensation Pressures Escalate
The Bay Area attracted 70% of AI venture capital funding nationwide since 2019, according to Pitchbook data.
Meta Platforms Inc. (NASDAQ:META) offered million-dollar compensation packages to AI recruits in September, highlighting rising pay pressures across the tech industry. The company lures entry-level software engineers with annual salaries ranging from $176,000 to $290,000.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.