Airbnb, Anthropic expand in New York despite business leaders' concerns over Mamdani's rent freeze plan

Airbnb and AI startup Anthropic have announced major expansion plans in New York City, investing in new office space and hiring despite growing concerns among some business leaders over Mayor Zohran Mamdani's policy proposals, including a rent freeze for rent-stabilised apartments.

The investments come at a time when executives such as Bill Ackman, Larry Fink, Jamie Dimon and Ken Griffin have warned that companies and high-income taxpayers could shift investments elsewhere if New York's business environment becomes less competitive. Against that backdrop, Airbnb and Anthropic are increasing their commitments to the city with major real estate and workforce expansions.

Airbnb buys Manhattan office building

Airbnb has purchased a six-storey building at 281 Park Avenue South in Manhattan's Gramercy neighbourhood for $81.5 million, according to a Times of India report that cited the New York Post.

The 42,500-square-foot Beaux-Arts building will serve as a hub for Airbnb's New York-area workforce of more than 600 employees.

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Explaining the move, Airbnb CEO Brian Chesky told AM New York that New York City has been part of the company's story since its earliest days and said the building reflects Airbnb's long-term commitment to the city. He added that it will become one of the company's largest employee hubs outside San Francisco.

The move is notable because Airbnb is expanding its physical presence in New York despite years of disputes over the city's short-term rental rules, including Local Law 18 and the 30-day minimum stay requirement, which have restricted its core rental business.

Anthropic plans to double New York workforce

Anthropic has also announced plans to lease the entire 16-storey building at 330 Hudson Street in Manhattan, significantly expanding its presence in the city.

The company said it expects to more than double its New York workforce by the end of the year, growing from fewer than 500 employees at the beginning of 2026 to more than 1,000 employees. The office has space for around 1,700 desks, with hiring planned across research, engineering, policy, sales and operations.

Anthropic Chief Commercial Officer Paul Smith told the New York Post that New York is one of the main hubs where AI is being put to work and said expanding the company's team would allow it to work more closely with financial institutions, media companies and cultural organisations based in the city.

The company has also previously announced a broader $50 billion investment in US AI computing infrastructure, including data centre projects in New York.

State and city leaders welcome expansion

New York State Governor Kathy Hochul and Mayor Zohran Mamdani welcomed Anthropic's expansion announcement.

City Comptroller Mark Levine also supported the investment, saying he would rather see AI tools built in New York so that the city benefits from the economic activity and New Yorkers help shape the technology.

Hochul additionally pointed to Micron's planned $100 billion semiconductor project in the state as another example of businesses continuing to invest in New York.

Business leaders remain concerned

The expansion announcements come amid a wider debate over New York City's business climate.

Last year, billionaire investor Bill Ackman warned that New York could see businesses leave the city if Mamdani became mayor.

BlackRock CEO Larry Fink recently said he was worried about New York and suggested the company could deploy more of its US investments elsewhere if conditions weakened. He noted that BlackRock employs around 8,000 people in New York and said future growth decisions would depend on the city's business environment.

JPMorgan Chase CEO Jamie Dimon has also warned that rising taxes and regulatory pressures could affect the city's competitiveness, while Citadel founder Ken Griffin has urged business leaders to "fight for their city" while expressing concerns about policy direction.

Amazon founder Jeff Bezos also criticised the city's policy debate during an interview with CNBC, arguing that increasing taxes on wealthy residents would not necessarily improve public services. Mamdani later responded on X, saying he knew teachers in Queens who would disagree with Bezos' comments.

Canadian businessman Kevin O'Leary later joined the debate, describing New York City as a "complete disaster."

Despite those warnings, the latest moves by Airbnb and Anthropic suggest that some major companies continue to see long-term opportunities in New York and are expanding their presence in the city.