webAI has expanded its footprint in downtown Austin, signing a lease for about 40,000 square feet across several floors of the office tower at 515 Congress Avenue. The company will also place its name atop the building, replacing the existing PMG signage at the intersection of Sixth Street and Congress Avenue.
Stream Realty Partners is managing leasing for the property, which is owned by KBS Realty Advisors based in Newport Beach, California. Since 2015, KBS has invested over $10 million to renovate the Class A office tower originally built in 1974.
webAI first leased space on the top floor approximately two years ago and has gradually increased its presence as it grows. Co-founder and CEO David Stout said that the company’s headquarters will be located on the 26th floor with a private elevator, while an engineering lab with freight elevator access for specialized hardware will occupy ground-level space.
The expansion follows a recent funding round announced on January 14 that valued webAI at $2.5 billion. This marks significant growth from its valuation of around $700 million in 2024. Investors include Time Ventures, Atreides Management, Forerunner, and Oxcart Ventures.
Founded with a focus on decentralized artificial intelligence systems, webAI provides enterprises with on-device AI solutions designed to keep sensitive data local rather than relying on large centralized data centers or cloud storage. The company’s approach aims to give businesses automation and generative AI capabilities while maintaining privacy over proprietary or customer information.
Currently employing about 150 people—mostly based in Texas—webAI expects its workforce to reach 200 soon. It also operates offices in Virginia and Michigan. Last fall, Jason Rathje joined as president of public sector operations; he previously worked as an MIT research scientist and led efforts at both the Pentagon-backed Office of Strategic Capital and AFWERX within the Air Force.
webAI is expanding into sectors such as aviation and connected devices and is preparing to introduce a consumer product that utilizes AI on personal data without transferring information externally.
