San Francisco’s streets, once famous for their tech-fueled optimism and sky-high rents, are now abuzz with a new kind of gold rush. But instead of pickaxes and pans, the city’s prospectors wield code and algorithms. Artificial intelligence, or AI, has become the talk of the town, capturing the imaginations of both corporate titans and scrappy entrepreneurs. At the heart of this boom are young innovators like Marshall Kools, a 24-year-old co-founder of a local startup, who shares a modest apartment in the NoPa neighborhood with two roommates. Kools, who sleeps in a nook beneath the stairs and owns little more than a Giorgio Armani dress shirt, is emblematic of a generation betting big on AI’s transformative power.
According to The New York Times, Kools’s company is focused on streamlining white-collar administrative work—a mission that, if successful, could upend traditional office jobs. “Spend an hour in this city, and you are bound to hear the talk,” the paper notes, describing how conversations in trendy cafés and even driverless Waymo taxis inevitably circle back to AI. The buzz isn’t just idle chatter: the AI boom has already spawned digital jackpots reminiscent of the legendary California gold rush. Take Matt Deitke, for example. Born the same year as Kools, Deitke was hired in 2025 on a staggering four-year, $250 million contract to work at the Meta Superintelligence Lab. This eye-popping deal is part of Meta’s $14.3 billion investment in Scale AI, underscoring the enormous sums now flowing into the sector.
But it’s not just startups and tech juggernauts feeling the tremors. The cybersecurity industry, too, is undergoing a seismic shift as organizations race to adapt to the new AI-driven landscape. A recent survey by Glilot Capital, reported by Calcalist, polled senior security executives from major global firms such as Blackstone, Virgin, Rakuten, and more. The results were striking: nearly 80% of Chief Information Security Officers (CISOs) plan to channel their 2026 budgets into AI-powered cybersecurity solutions. Specifically, 77.8% said new investments would be directed toward AI-driven tools, while 41.3% earmarked funds for AI systems that automate security tasks.
The survey paints a picture of an industry in flux, with cloud data protection and identity threat detection each receiving priority from 33% of respondents. Meanwhile, 22% are focusing on exposure management and attack-surface solutions. The pressure to innovate is palpable. As Arik Kleinstein, co-founder and managing partner of Glilot Capital, told Calcalist, “Almost all corporate security budgets are now being directed toward AI products across multiple categories. There is no board or management team of a public company that isn’t demanding rapid AI adoption to improve profitability and ensure survival. Organizations feel completely exposed, as if they have no protective wall, so they are rushing to build a new one. For the cybersecurity industry, this shift will enable the creation of a new generation of giant companies.”
Indeed, the survey reveals that 58.7% of CISOs believe the operational use of AI for defense will become standard by the end of 2026. Over half (55.6%) see an urgent need to secure AI-generated code, while 50.8% are prioritizing tools to detect AI-driven attacks. Governance and monitoring of organizational AI usage is also top of mind for 47.6% of respondents, and nearly a third (30.2%) expect demand to grow for technologies that test the robustness and integrity of AI models.
Even the criteria for selecting security vendors are evolving. The survey found that 65% of security executives believe companies that raise major funding rounds receive greater attention, although only 14.3% admit that heavily funded vendors get priority consideration. The majority, 61.9%, say that product quality is independent of a founder’s track record, while 38.1% believe repeat entrepreneurs tend to deliver more mature solutions. The identity of investors also matters: 63.5% of CISOs said the venture capital firms backing a startup can influence their decisions, with 19% viewing the absence of cybersecurity-focused investors as a red flag.
Meanwhile, the broader corporate world is grappling with how to consolidate security tools in the AI era. While 34.9% of CISOs still prefer to select the best product in each category, a similar share (33.3%) are looking to reduce the number of vendors they work with. Only a small fraction—6.3%—favor relying on a handful of broad security platforms, suggesting that specialization remains important even as consolidation pressures mount.
Nowhere is the impact of AI more visible than at Apple, the consumer tech behemoth whose fortunes are closely watched by Wall Street and Main Street alike. After a lackluster 2025, Apple’s stock has rebounded sharply, climbing 8% since its latest earnings report, as detailed by The Motley Fool. The catalyst? A surge in iPhone sales—up 23% in the fiscal 2026 first quarter ending December 27, 2025—and a renewed push into AI-powered features.
On the company’s first-quarter earnings call, CEO Tim Cook sought to reassure investors and users alike that Apple is anything but out of the AI race. “These are just some of the many powerful AI features that are enabling our users to do remarkable things with our products, which are far and away the best platforms in the world for AI,” Cook declared. He highlighted new capabilities such as live translation through AirPods, AI writing tools and cleanup in 15 different languages, and visual intelligence features that allow users to interact with their iPhone screens in novel ways.
Cook emphasized that privacy remains central to Apple’s approach to AI. “The majority of users on enabled iPhones are actively leveraging the power of Apple Intelligence,” he said, underscoring the company’s focus on user experience. While Apple’s initial AI offerings may have been met with skepticism, the company is hardly standing still. It has postponed the relaunch of Siri to 2026 and struck an agreement with Alphabet to help get the project back on track. Apple is also collaborating with Alphabet to develop its own foundation AI models, with plans to roll out Siri as an AI-driven chatbot later this year.
What sets Apple apart, according to The Motley Fool, is not just its technological prowess but its ability to seamlessly integrate AI into devices that millions of people already love. “Its AI platform serves that purpose, and users aren’t missing the extra AI capabilities that they can get elsewhere,” the report noted. In other words, Apple’s edge lies in its commitment to enhancing the consumer experience, with AI as a supporting player rather than the main act.
As the AI revolution accelerates, it’s clear that no corner of the tech world—or the broader business landscape—will remain untouched. From the cramped apartments of San Francisco’s young visionaries to the boardrooms of multinational corporations, the race to harness AI’s potential is on. And as companies large and small vie for their place in this brave new world, the only certainty is that the pace of change will continue to quicken.