Artificial intelligence and social media company xAI has recently leased office space in Downtown Bellevue, according to City of Bellevue permit records, marking another high-profile tech tenant for the city’s growing business district.
Founded by Elon Musk in 2023, xAI leased one full floor at Lincoln Square South, totaling just under 25,000 square feet. The space was previously occupied by video game developer Epic Games, which relocated its Bellevue offices to Key Center, according to city records. xAI is headquartered in Palo Alto, California, and its valuation is estimated between $230 billion and $250 billion as of early 2026 following its acquisition by SpaceX.
The move reflects a broader trend of artificial intelligence companies expanding their presence in Downtown Bellevue. OpenAI, another major AI firm, recently leased additional office space in the area, according to commercial real estate data firm CoStar.
OpenAI first opened offices in Bellevue in 2024 near Microsoft, its longtime partner. The partnership began in 2019 with a $1 billion investment from Microsoft, followed by an additional $10 billion investment, giving Microsoft a 49 percent ownership stake in OpenAI. Since then, the two companies have worked together to integrate OpenAI’s technology into Microsoft products.
In 2025, OpenAI expanded its Bellevue footprint by leasing two floors at City Center Plaza, located at 555 110th Avenue Northeast. The space had previously been occupied by Microsoft, which vacated the building in 2024 when its lease expired, leaving more than 500,000 square feet available. OpenAI’s total office space in Bellevue now spans approximately 272,000 square feet.
The expansion of AI companies like xAI and OpenAI shows that Downtown Bellevue is becoming a growing hub for technology companies, which could bring more jobs and business activity to the area.
