Elon Musk's AI startup xAI is quietly muscling into downtown Bellevue, taking over office space in Lincoln Square South that used to belong to video-game powerhouse Epic Games. The move drops another big-name tech tenant into the mixed-use tower, which is already stacked with high-profile firms.
According to the Puget Sound Business Journal, xAI has signed a lease for a suite in Lincoln Square South. Commercial listings flag that particular suite as former Epic Games space, and the Broderick Group's marketing materials for the building list Epic as a prior occupant, a sign brokers were openly shopping the floor before xAI stepped in. The Business Journal noted that no lease price was disclosed and neither xAI nor the building's management has offered an official comment so far.
Why Bellevue Is Luring AI Heavyweights
xAI is not the only AI outfit planting a flag on the Eastside. Just last Friday, OpenAI revealed that it has locked in a major lease at City Center Plaza in downtown Bellevue, further tightening the competition for premium office floors in the neighborhood. GeekWire reported that the expansion brings tens of thousands of additional square feet into OpenAI's portfolio and highlights how strongly the Seattle region now pulls in AI talent and cloud-focused partners.
This wave of AI tenants is rolling in after several choppy years for Bellevue's core office market. Microsoft and other long-time tech anchors have consolidated or moved out of downtown, leaving behind a patchwork of high-end, move-in-ready space. The Seattle Times has tracked how that shakeup reshaped what was available to lease and opened doors for newer players that want modern towers close to transit. Brokers told the paper that companies willing to shell out for upgraded offices are fueling a classic flight-to-quality trend that benefits buildings like Lincoln Square.
For xAI, the Bellevue office is another piece in a fast-growing puzzle. The company has been pouring money into infrastructure, including the purchase of a large property in Memphis and the build-out of substantial data center capacity to power its Grok models. TechCrunch reported last year that the Memphis push reflects a rapid ramp-up in compute and storage, a strategy that naturally pairs with satellite hubs for recruiting and operations.
In Bellevue, the xAI lease is being read as a fresh vote of confidence in the city's downtown towers, even as overall vacancy is still higher than it was before the pandemic. Market watchers told The Seattle Times that employers chasing top-tier talent and amenity-rich buildings are driving demand for spots like Lincoln Square. With xAI now in the mix, those same observers suggest more AI firms could decide the Eastside is where their next hub belongs.
