Salesforce announces $15 billion San Francisco investment as AI development boosts

Salesforce has announced that the company will invest $15 billion in San Francisco over the next five years to expand its artificial intelligence capabilities, signaling the cloud software provider's intensified commitment to the competitive AI sector.

The substantial investment will establish a new AI incubator hub at the company's headquarters and accelerate development of AI agents that can autonomously perform user tasks.

CEO Marc Benioff revealed: "Our deep commitment to our hometown, advancing AI innovation, creating jobs and helping companies and our communities thrive."

The announcement precedes Salesforce's annual Dreamforce conference, expected to draw 50,000 attendees and generate $130 million in local revenue next week.

The San Francisco-based company has been aggressively integrating AI across its product portfolio, including workplace messaging platform Slack, while competing with technology giants Microsoft, Oracle and ServiceNow for enterprise AI clients.

Morningstar analyst Dan Romanoff noted the strategic necessity of such investments, observing that: "if the company wants to remain a leader in an important emerging technology area, it must have a pipeline of talent to innovate and drive the field forward."

Salesforce simultaneously launched its "Agentforce 360" AI platform globally, continuing its expansion despite recent financial challenges that have seen shares decline 28% this year.

The investment follows last week's announcement of $1 billion in Mexican funding over five years, demonstrating the company's multinational growth strategy even after reporting disappointing third-quarter revenue projections in September.