New data shows Silicon Valley’s AI boom is minting a new class of startup millionaires and sending home prices through the roof – with some sellers even asking buyers for shares in companies like Anthropic instead of millions in cash.

With prices climbing by double digits and OpenAI and SpaceX expected to go public by the end of summer, some insiders predict AI startup shares could become the next big thing in Silicon Valley’s “unaffordable” real estate market.

AI wealth floods the Bay Area housing market

Market rental rates in San Francisco grew by 22% over the past 12 months, according to the annual Zumper National Rent Report, even outpacing the traditionally more expensive New York City rental market, which hovered around the 1% mark in price changes.

Median monthly rent for a two-bedroom apartment in the Bay Area is now tied with New York City at $5,500.

What’s more, the median price of a Silicon Valley home also rose by 18% to a record $2.15 million in March – all driven by a new wave of paper AI millionaires, Bloomberg News reported on Wednesday.

These so-called paper millionaires – and even billionaires – are Silicon Valley employees whose private startup shares are worth millions before their companies go public, with thousands of them having proliferated across the Bay Area since 2023.

Meanwhile, the high housing costs are said to have fueled a surge in all-cash offers and auction-style bidding wars, pushing out the average salaried tech worker and essentially “warping the entire residential market,” Bloomberg said.

“With supply scarce and competition fierce, some sellers are getting creative – betting that the same AI boom driving up real estate prices can also unlock new ways to pay for homes,” the news outlet said.

Startup shares become the new status symbol

Private stock sales tied to major AI firms have exploded over the past year, particularly for companies like OpenAI, Anthropic, and SpaceX, which are set to publicly list on stock exchanges.

But even without an IPO, many of these startup workers have been able to convert portions of their private holdings into cash at sky-high valuations.

And while traditional currency still dominates most home sales, as AI valuations continue to rise and IPOs and secondary share offerings abound, insiders expect startup equity to increasingly become part of the negotiation.

Some home sellers, hoping to get a piece of the AI pie, are finding creative ways to include private share in the real estate deal itself.

Last month, a Silicon Valley investment banker offered to trade his $8 million Bay Area estate exclusively for shares in the AI startup Anthropic, rather than a traditional cash transaction, betting the unusual deal would catch the attention of Silicon Valley’s new class of AI elite buyers.

Besides noting that the property has practically doubled in value from $4.7 million since it was purchased barely a year ago, in March 2025, the equity-swapping option has sparked a plethora of comments among social media users, as expected.

"That's wild flex, but imagine if Anthropic tanks right after you close on the deal. You'd be sitting in 5 million dollar house, wondering why you didn't just take the cash and buy index funds like normal person lol,” said one Redditor on a thread by @zillowgonewild.

Another posted a GIF: “Eat the Rich,” presumably to show their discontent with the costly San Francisco housing market.

AI wealth sparks a new housing divide

Other Redditors in similar threads describe the current market as “dot-com mania all over again,” with many complaining that ordinary buyers are increasingly being priced out by AI-driven wealth and speculative investment activity.

“OpenAI ran multiple tenders totaling over $8B, including a $6.6B October 2025 tender where 600+ employees sold shares, with 75 individuals each cashing out $30M, all SF-based,” said one user on a thread about how AI money is impacting the Silicon Valley real estate market – even before the OpenAI and Anthropic IPOs.

Moreover, recent IPO history suggests ordinary public-market buyers may find it difficult to buy into the AI boom, while the same sky-high valuations continue benefiting Silicon Valley insiders, according to The Information.

Some pointed to growing concerns that startup shares themselves are beginning to function like a parallel financial system inside parts of Silicon Valley – one where access to elite private equity can potentially unlock opportunities unavailable to traditional buyers.

“Meanwhile non-AI employees falling further and further behind in the area. I know a lot of people who have advanced degrees and “well paying” non-tech jobs in the bay that would be considered upper-middle, or upper class in other places, but just live a very modest lower-middle class type of lifestyle in the bay. It’s so wild,” another Reddit user posted on the same thread.

Still, the unusual listing appears to have garnered a response from Anthropic, according to one Bay Area realtor, who says Anthropic is “warning investors about the risks of using private-share marketplaces and secondary trading platforms claiming to offer access to its stock.”

The realtor listed more than half a dozen platforms – including Forge Global, Hiive, and Upmarket – that Anthropic says are not authorized to facilitate those transactions,

“The warning underscores potential risks involved in investing in tech companies through unverified channels, which can impact the overall investment landscape in Silicon Valley," the realtor said.

And in case you're wondering where Austin, Texas, is on the list – being the new Silicon Hills of the South and home to Elon Musk's Tesla and X, among others (SpaceX headquarters is in Brownsville, TX) – it seems the real estate market there has not suffered the same drama felt by its tech-laden counterpart to the west.

Calling it the “clearest soft-landing story in the country,” Zumper says Austin and other metro areas such as Dallas and San Antonio have responded to the influx of tech companies and their workers with a surplus in housing supply, keeping both rentals and home prices steady, with most prices even declining.

Unlock more exclusive Cybernews content on YouTube.