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California's AI boom & L.A.'s future: From robotic houses to fashion avatars

  • Writer: Ralph Schwehr
    Ralph Schwehr
  • Sep 2
  • 4 min read

Greetings from Los Angeles.

California is burning. Not literally this time, though, but with a feverish innovation fervor. While Sacramento is discussing stricter AI regulations, usage is growing rapidly: 9 million people in California use ChatGPT every week . At the same time, new markets are emerging, from fashion avatars to robotic homes to green hydrogen production.

Los Angeles is more than just a backdrop. The city is currently demonstrating in a condensed form how technology, culture, and business collide , and how opportunities, risks, and conflicts are closely intertwined.


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AI: Productivity boost & governance debate

The numbers are impressive: 9 million weekly users in one state demonstrate that AI has long been mainstream. Whether for creative professionals, startups, or corporations, the efficiency gains are tangible . Companies report significant time savings, new workflows, and even entirely new business models.

But there's a second side to the euphoria. Politicians in Sacramento are urging caution: data protection, fairness, and security must evolve accordingly. Because the question is no longer whether AI will be used, but how. California is thus becoming the scene of a global experiment between limitless productivity and necessary regulation.


Creative industries: When avatars learn to walk 👠

A Vogue cover featuring AI-generated models has rocked the industry. Suddenly, what was previously considered futuristic is reality: Digital twins of models are competing with real people.

This opens up enormous opportunities for brands – campaigns become cheaper, more flexible, and more scalable. But at the same time, concerns about jobs, compensation rights, and identity protection are growing. What does it mean for creatives if an algorithm can replicate their face or body?

Los Angeles, as a global center for entertainment and fashion, is thus becoming a test laboratory for questions that will soon be on the global agenda: Who owns the digital self – and who benefits from its value?


Build-Tech: Robotics & climate protection as a double lever

While the creative industry is wrangling over identities, the next hardware wave is rolling in in Santa Monica and Pacific Palisades.

  • Equatic secures $11.6 million for ocean CO₂ removal and green hydrogen production, a project that uniquely combines technology and climate protection.

  • Cosmic is building robotic microfactories that are intended to revolutionize home construction. The goal is to build faster, more efficiently, and more scalably – a response to California's housing shortage and the growing need for resilient reconstruction after natural disasters.

Both examples make it clear: Los Angeles is not just a hotspot for software, but is developing into a build-tech center that is rethinking infrastructure, energy and living spaces.


Deal flow & tech pipeline: From billions to millions

Things remain exciting on the financing side as well. Motorola has acquired Westwood-based defense and communications technology specialist Silvus Technologies for $4.4 billion. A strong signal that cutting-edge technologies from LA are also gaining global strategic importance.

At the same time, the startup scene continues to grow:

  • Glendale is establishing itself as a new tech hub with accelerator programs.

  • Payment Labs raises $3.25 million for smart payout processes in sports, the creator economy, and esports – a prime example of how tech and entertainment go hand in hand in LA.


Education & Mobility: Young Talent & Lifestyle

The long-term strength of the ecosystem also depends on talent. The USC Viterbi School of Engineering is sending a clear signal: starting in 2026, it will introduce a bachelor's degree in Artificial Intelligence. The goal is to train skilled professionals early and retain them at the location, a crucial step in meeting the growing global demand for AI.

And California remains ahead on the lifestyle front as well: Pebble begins deliveries of its all-electric travel trailer "Flow." It blends mobility, sustainability, and a sense of freedom—in keeping with the Californian lifestyle.

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Work culture: Home office remains

Amid the innovation frenzy, there is also one silent constant: work culture. In LA and San Francisco, fewer employees are returning to the office than the US average. This shows that hybrid working is not an exception here, but has become an integral part of the location's DNA. For companies, this means that new work models are not just a trend, but a prerequisite for retaining talent in California.


🔑 Key messages

  • 9 million weekly ChatGPT users in California. AI has long been a mass phenomenon.

  • Fashion & AI avatars between brand fantasy and work reality.

  • Robotics & Green Tech capital flows into build-tech & climate innovations.

  • M&A & start-ups Motorola-Silvus, Payment Labs & Glendale as growth hotspots.

  • USC BSAI Talent development for the AI future locally.

  • Working world: Hybrid working is becoming more established in California.


📌 Sources


Conclusion

Los Angeles is currently offering a panorama of the future: AI as an economic engine, fashion avatars as a cultural conflict, robotics and green tech as building blocks against the climate crisis and housing shortage. And in the midst of it all, a work culture that demonstrates that flexibility is not a bonus here, but a prerequisite.


👉 Want to know how AI, green tech, and work culture can transform your company? Then plan your customized AI roadmap with OAKAI—future-proof, human-centered, and effective.

 
 
 

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