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Billionaires warned New York would scare off business. Anthropic and Airbnb just made their biggest bets on the city yet

Some billionaires have spent the past year warning that the political climate in New York City could spook companies, capital and high-income earners. But two fast-growing brands are taking action despite the noise.

Anthropic is leasing an entire 16-story office building at 330 Hudson Street in Manhattan, significantly expanding Anthropic’s New York footprint from a much smaller office (just around the corner, at 155 Sixth Avenue) and announcing that the company plans to double its workforce in the city. The Claude maker, which had fewer than 500 employees in the city at the beginning of this year, expects to occupy the building’s entire 16 floors (enough space for 1,700 desks) and have more than 1,000 employees by the end of the year. The company is currently hiring for positions in research, engineering, policy, sales and operations in New York.

“New York is one of the main hubs for how to put AI to work, and Anthropic is in the middle of that as the technology partner to the financial institutions, media companies and cultural organizations that help define the city,” said Paul Smith, Anthropic chief commercial officer. he said. New York Post One expression. “Doubling our team here and deepening our long-term commitment to the city will allow us to be closer to this business and the people who drive it forward.”

At the same time, Airbnb It’s making a big real estate claim to New York of its own. The company purchased 281 Park Avenue South, a six-story building in Gramercy, for $81.5 million. Wall StreetJournal. The building is expected to serve as a hub for Airbnb’s workforce of more than 100 in the New York area. 600 employees.

“New York City has been a part of our story since the early days of Airbnb,” said CEO Brian Chesky. expression with A.M. New York. “This building reflects our long-term commitment to the city and will be home to one of our largest employee headquarters outside of San Francisco. We’re excited to continue investing in the city and the people who make it extraordinary.”

Antropik and Airbnb’s moves defy Mamdani detractors’ predictions

These moves are completely at odds with narratives that suggest New York City has become unviable for business. Billionaire investor Bill Ackman Last year Zohran Mamdani became mayor, “You’re going to see businesses flee New York.”

Citadel founder Ken Griffin also called on New York businessmen to “fight for their city” and warned that political choices could push talent elsewhere. Griffin himself was there Public fight with the mayor Following a Tax Day video in which the young self-described Democratic Socialist cited Griffin’s penthouse as a prime example of why the city could benefit from the tax. Griffin’s CCO at Citadel wrote in a letter to investors that the company may decide to halt construction Construction of a $6 billion building in midtown Manhattan – something that never happened.

Both Mamdani and New York State Governor Kathy Hochul supported Anthropic’s announcement, and other local politicians applauded the investment in the city.

“I would prefer to see these tools built here so we can benefit from the economic vitality and have New Yorkers shaping these tools — people who ride the subway every day, diverse New Yorkers,” City Comptroller Mark Levine said. he told NY1.

hochul launched Memory chip maker Micron’s $100 billion semiconductor project in New York is seen as “leading the resurgence” and says the state is “the right place for your business to grow and thrive.”

For Anthropic and Airbnb, New York seems too strategically important to abandon.

According to Anthropic, the city appears to offer proximity to industries currently vying to adopt productive AI: finance, media, legal services, consulting, advertising, healthcare, and enterprise technology. Antropik’s career area currently lists New York City as a suitable location for multiple jobs, including technical and research roles. Anthropic also framed its broader US expansion as part of a much larger infrastructure buildout. In November, the company announced it would invest $50 billion in American AI computing infrastructure, including data centers in New York.

Airbnb’s New York move is more notable because it is Airbnb’s first expansion into the city after a years-long wrangling that resulted in local politicians agreeing to a 30-day minimum stay requirement for all Airbnb listings. Company spent years fighting the city in the short term Rental restrictions such as Local Law 18, passed in 2022, have restricted Airbnb’s core short-term rental business in one of the world’s largest travel markets. Yet Airbnb is purchasing a permanent home in Manhattan.

Anthropic and Airbnb did not immediately respond Luck‘s request for comment.

Moving to more tax-efficient states

These two expansions come at a sensitive time for New York’s business community. Gradual City politics, proposed taxes on the wealthy, housing affordability fights and public safety concerns have sparked warnings that companies may choose lower-tax states.

In recent years, many high-profile billionaires have moved to Florida, a state with no personal income tax. Amazon founder Jeff Bezos announced in 2023: He was leaving Seattle for Miami After nearly thirty years in Washington, the old Starbucks CEO Howard Schultz said earlier this year: he and his wife were moving from Seattle to Florida.

This story first appeared on: Fortune.com

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