Tech
Density of AI postings by metro area clusters
Sherwood News

Charted and mapped: Which American cities are the most ready for AI?

Just 30 top-performing metro areas capture two-thirds of all AI job postings.

Tech companies are tripping over themselves to invest in artificial intelligence, but that wealth is not spreading evenly across the US.

A new analysis from nonprofit Brookings Metro, which is part of the Brookings Institution, looked at data from 195 of the largest US metropolitan areas to determine where they stood as far as AI talent (the availability of AI-capable workers and relevant degree programs), innovation (research programs, AI R&D spending, patents), and adoption (industry uptake, AI startups).

In doing so, Brookings came up with six different categories of AI readiness. Here’s how it categorizes the metro areas, from most ready to reap the benefits of AI development to least:

• “Superstars: The San Francisco and San Jose, Calif., metropolitan areas exhibit unmatched strength across all three AI pillars (talent, innovation, and adoption).

Star Hubs: This group of 28 metro areas forms a second echelon of uniformly strong AI ecosystems, balancing top‑tier talent, research, and enterprise uptake.

Emerging Centers: This group of 14 metro areas combines top performance in two pillars with one developing area.

Focused Movers: These 29 metro areas excel in one pillar while maintaining foundations in the other two.

Nascent Adopters: This group of 79 metro areas shows moderate performance across all three pillars.

Others: A group of 43 metro areas that currently lags on multiple pillars.”

Brookings found that much of AI opportunity is concentrated among the usual suspects, with the Bay Area, where tech giants Google, Apple, and Meta have their headquarters, accounting for 13% of national job postings featuring AI skills. (San Francisco and San Jose are the only superstars on the list.) Combined with the Star Hubs, which includes places like Seattle, Washington, DC, and Austin, the 30 top-performing metro areas captured 67% of total AI job postings. 

However, there are signs of geographic diffusion beyond the known tech and coastal cities, in places like Pittsburgh; Detroit; Madison, Wisconsin; and Huntsville, Alabama, which rank in the top quartile in at least two pillars, which make them Emerging Centers.

“While the Bay Area’s dominance isn’t going down, we see other places rising up the ranks,” Shriya Methkupally, senior research assistant at Brookings Metro, told Sherwood News. She said the situation is much more spread out than it was the last time Brookings studied this topic in 2021.

Still, Brookings found that more than half of US metro areas were in the bottom two tiers, Nascent Adopters and Others, suggesting “significant shortfalls in talent pipelines, research infrastructure, and enterprise adoption.”

While the Superstars are only on the West Coast, Star Hubs and Emerging Centers are popping up in places around the country, including within the Sun Belt and the Rust Belt.

And here those metro areas are separated out by category and ranked by AI job postings per 100 people employed in the area:

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Jon Keegan

EPA: xAI’s Colossus data center illegally used gas turbines without permits

The Environmental Protection Agency has ruled that xAI violated the law when it used dozens of portable gas generators for its Colossus 1 data center without air quality permits.

When xAI set out to build Colossus 1 in Memphis, Tennessee, CEO Elon Musk wanted to move with unprecedented speed, avoiding all of the red tape that could slow such a big project down.

To power the 1-gigawatt data center, Musk took advantage of a local loophole that allowed portable gas generators to be used without any permits, as long as they did not spend more than 364 days in the same spot. That allowed xAI to bring in dozens of truck-sized gas generators to quickly supply the massive amount of power the data center needed to train xAI’s Grok model.

The new EPA rule says the use of such portable generators falls under federal regulation, and the company did need air quality permits to operate the turbines. xAI is also using dozens of such generators to power its Colossus 2 data center just over the border in Alabama.

To power the 1-gigawatt data center, Musk took advantage of a local loophole that allowed portable gas generators to be used without any permits, as long as they did not spend more than 364 days in the same spot. That allowed xAI to bring in dozens of truck-sized gas generators to quickly supply the massive amount of power the data center needed to train xAI’s Grok model.

The new EPA rule says the use of such portable generators falls under federal regulation, and the company did need air quality permits to operate the turbines. xAI is also using dozens of such generators to power its Colossus 2 data center just over the border in Alabama.

tech
Rani Molla

Trump to push Big Tech to fund new power plants as AI drives up electricity costs

President Donald Trump is expected to announce a plan Friday morning that would require Big Tech companies to bid on 15-year contracts for new electricity generation capacity. The move would effectively force companies to help fund new power plants in the PJM region as soaring demand from AI data centers pushes up electricity costs across the US power grid.

Earlier this week, Trump called on tech giants to “pay their own way,” arguing that households and small businesses should not bear the cost of power infrastructure needed to support energy-hungry data centers.

Microsoft quickly responded, saying it would “pay utility rates that are high enough to cover our electricity costs,” along with committing to other changes aimed at easing pressure on the grid. Other major tech companies are expected to follow suit, though Wedbush Securities analyst Dan Ives warned the added costs could slow the pace of data center build-outs.

As we’ve noted, forcing tech companies to shoulder higher electricity costs is likely to hit some firms harder than others. Companies like Microsoft, Google, and Amazon can pass at least some of those costs on to customers by selling data center capacity downstream. Meta, in contrast, does not have a cloud business, meaning its AI ambitions lack a direct revenue stream to offset rising power costs.

So far tech stocks don’t appear to be affected much in premarket trading. However utility companies most levered to the AI boom certainly are, with Vistra, Constellation Energy, and Talen Energy deep in the red ahead of the open as analysts at Jefferies warn that these firms face risks from this plan.

Earlier this week, Trump called on tech giants to “pay their own way,” arguing that households and small businesses should not bear the cost of power infrastructure needed to support energy-hungry data centers.

Microsoft quickly responded, saying it would “pay utility rates that are high enough to cover our electricity costs,” along with committing to other changes aimed at easing pressure on the grid. Other major tech companies are expected to follow suit, though Wedbush Securities analyst Dan Ives warned the added costs could slow the pace of data center build-outs.

As we’ve noted, forcing tech companies to shoulder higher electricity costs is likely to hit some firms harder than others. Companies like Microsoft, Google, and Amazon can pass at least some of those costs on to customers by selling data center capacity downstream. Meta, in contrast, does not have a cloud business, meaning its AI ambitions lack a direct revenue stream to offset rising power costs.

So far tech stocks don’t appear to be affected much in premarket trading. However utility companies most levered to the AI boom certainly are, with Vistra, Constellation Energy, and Talen Energy deep in the red ahead of the open as analysts at Jefferies warn that these firms face risks from this plan.

tech
Jon Keegan

OpenAI working to build a US supply chain for its hardware plans, including robots

When OpenAI purchased Jony Ive’s I/O, it entered the hardware business. The company is currently ramping up to produce a mysterious AI-powered gadget.

But OpenAI plans on making more than just consumer gadgets — it also plans on making data center hardware, and even robots.

Bloomberg reports that OpenAI has been on the hunt for US-based suppliers for silicon and motors for robotics, as well as cooling systems for data centers.

AI companies are looking toward robots as a logical next step for finding applications for their models.

OpenAI told Bloomberg that US companies building the AI brains of robots might have an edge against the Chinese hardware manufacturers that are currently making some impressive humanoid robots.

Bloomberg reports that OpenAI has been on the hunt for US-based suppliers for silicon and motors for robotics, as well as cooling systems for data centers.

AI companies are looking toward robots as a logical next step for finding applications for their models.

OpenAI told Bloomberg that US companies building the AI brains of robots might have an edge against the Chinese hardware manufacturers that are currently making some impressive humanoid robots.

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