Is Silicon Valley Dead? Google Seems To Think SoDamien Moye
So for years, many say Silicon Valley is dying. For example, you don’t see Amazon rushing to put their second headquarters in Silicon Valley, do you? But now, Google, perhaps the largest of all IT service companies, will spend over $2.6 billion in expansion. It won’t be in Silicon Valley. Is Silicon Valley dead? Google seems to think so.
Google will spend over two billion dollars building a New York City base. In fact, they’re ready to close a deal on a building in the Meatpacking District. That’s in southwest Manhattan, walking distance to Greenwich Village and Chelsea. They already have a building that’s a block long. If this deal is successful, then it would be the most expensive real estate deal in NYC history. Keep in mind we’re talking New York City here!
The appeal of NYC is real to IT support executives, too. One tech executive said large companies like Google and Amazon create a booming economy. Techies work here for a few years, then move on to try to start their own companies. They’re not the only ones leaving San Francisco, either. One San Francisco tech investor went on a three day trip to small cities in the Midwest. He did this so Silicon Valley investors could abandon California ambitions and seek out talents elsewhere. Another venture capital investor said Silicon Valley is too expensive, congested and competitive, so she’s going somewhere else. Even AOL founder Stage Cage admitted Silicon Valley hit it’s peak. Is Silicon Valley dead?
It’s not looking good. Also, the phrase, “We told you so” doesn’t do justice. We insiders warned them about the dangers Silicon Valley headed into: wealth inequality, sex scandals, high prices, and overworked underpaid frustrated employees. Human beings can only take so much. So of course they’re going to move somewhere else. But why New York? Rent prices and expenses are just as costly in New York City as they are in greater San Francisco and San Jose. It’s also just as crowded. However, the talent keep coming. I ask again. Is Silicon Valley dead? Is New York City a better alternative?