MOUNTAIN VIEW — OpenAI has leased a Mountain View office hub where the artificial intelligence dynamo can employ several hundred people and launch a huge expansion into Silicon Valley.
The company has officially signed a rental agreement to occupy office buildings at 350 and 380 Ellis St. in Mountain View, according to documents filed on Feb. 25 with the Santa Clara County Recorder’s Office.
The buildings together total roughly 439,000 square feet, according to the Property Shark commercial real estate database.
A Newmark commercial real estate brokerage team that includes Phil Mahoney, an executive vice chairman for Newmark, is in charge of the leasing efforts for the Mountain View office hub.
“This decision by OpenAI to make this big move will open the way for more AI companies to expand in Silicon Valley rather than in San Francisco,” said David Sandlin, an executive vice president with Colliers, a commercial real estate firm.
The 350 Ellis St. offices total about 264,700 square feet, while the 380 Ellis site totals about 184,300 square feet, the Property Shark site reports. Each building is three stories tall.
OpenAI leased the office buildings for 10 years, the county real estate records show. The lease agreement also allows for two extensions of the original lease. Each extension would be for a period of six years.
The components of the rental agreement that were included in the official filing also indicate that OpenAI could be in a position to greatly cement its presence in Mountain View. OpenAI is the creator of ChatGPT, an advanced AI chatbot.
OpenAI obtained a right of first refusal to purchase the buildings, the real estate documents show. The filing didn’t reveal additional details of the company’s right to become an owner of the site.
It wasn’t immediately clear on which date the lease commenced, but the real estate files show the lease was signed prior to the filing.
The office hub has been described as an “exquisite” office hub, according to a brochure circulated for the property.
KKR Real Estate Finance Trust seized ownership of the office hub through a deed in lieu of foreclosure posted in 2024. New York City-based investment firm KKR & Co. Inc. manages the KKR real estate unit.
The foreclosure proceeding placed a value of $120.6 million on the property, one-third of the $357.6 million that a group of real estate investors paid for the site in 2021.
Some signs have emerged lately that suggest office market activity and the overall commercial real estate market in Silicon Valley have begun to rebound in solid fashion.
Major rental deals powered the South Bay office market in 2025 to its best year of leasing activity since the COVID-19 outbreak, Savills, a commercial real estate firm, reported in January.
“Full-year leasing volume for 2025 reached 7 million square feet, the highest level post-pandemic,” Savills stated in the report.
The overall leasing volume in 2025 was 26% higher than in 2024, Savills reported.
The OpenAI deal might nudge other artificial intelligence firms to seek elbow room and expansion sites in the South Bay rather than to cram into office spaces in San Francisco.
“You definitely see tech companies take a bandwagon approach,” Sandlin said.
The OpenAI lease and other recent AI deals at big office sites in downtown Sunnyvale and west San Jose show the office market is not only in recovery mode but is rebounding, in Sandlin’s view.
“Office activity is definitely ramping up in Silicon Valley,” Sandlin said. “The South Bay office market will be much better in 2027 than it is now, and it is better now than it was 12 months ago.”
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