Salesforce to invest $15 billion in San Francisco over next five years

SAN FRANCISCO - Salesforce (NYSE:CRM), the $230 billion market cap software giant with impressive gross profit margins of nearly 78%, announced plans to invest $15 billion in San Francisco over the next five years, according to a company press release issued ahead of its annual Dreamforce conference. According to InvestingPro analysis, the company appears undervalued based on its Fair Value calculations.

The investment will support a new AI Incubator Hub on the Salesforce campus, fund workforce development initiatives, and assist companies in adopting AI technologies. The announcement comes as Salesforce prepares to host nearly 50,000 attendees at Dreamforce from October 14-16, which the company describes as the world’s largest AI event. With revenue growth of 8.33% and a perfect Piotroski Score of 9, Salesforce continues to demonstrate strong financial performance. InvestingPro subscribers can access 8 more key insights about Salesforce’s financial health and growth prospects.

"This $15 billion investment reflects our deep commitment to our hometown," said Marc Benioff, Chair and CEO of Salesforce, in the statement.

The Dreamforce conference is expected to generate $130 million in revenue for San Francisco and create 35,000 local jobs to support the event, according to the company.

Salesforce, San Francisco’s largest private employer, currently occupies 30 floors in the city’s tallest building. The company has acquired several Bay Area startups in recent years, including MuleSoft, Slack, and most recently Bluebirds, Waii, and Regrello in 2025. Salesforce has also signed a definitive agreement to acquire Informatica.

As part of its AI initiatives, Salesforce is creating new job categories and providing upskilling opportunities through Trailhead, its free online learning platform, which has reportedly helped over 5 million people build skills for the future workforce.

The company also announced a new $39 million pledge to education and healthcare, bringing the combined lifetime contributions of Salesforce and its CEO Marc Benioff to the Bay Area to more than $1 billion, according to the press release.

In other recent news, Salesforce announced a significant philanthropic contribution, with Marc and Lynne Benioff donating $100 million to UCSF Benioff Children’s Hospitals to expand pediatric care facilities. Additionally, Salesforce pledged $39 million to support education and local children’s hospitals, totaling a combined $139 million donation. In a strategic business move, Haleon has partnered with Salesforce to enhance its pharmacy engagement using Salesforce’s Life Sciences Cloud for Customer Engagement and other AI-powered solutions. This partnership aims to provide Haleon’s sales representatives with data-driven insights into consumer demographics and shopping trends.

Meanwhile, Stifel has adjusted its price target for Salesforce to $300 from $325, maintaining a Buy rating. This adjustment comes amid investor concerns about top-line improvement and AI monetization. On the security front, Salesforce has refused to pay a ransom to a hacker group threatening to leak substantial client data. The company disclosed that the hacker group, ShinyHunters, planned to release information stolen during a security incident affecting multiple customers.

Lastly, KeyBanc Capital Markets highlighted the acceleration of enterprise AI adoption, noting Salesforce’s progress in integrating AI into customer workflows. These developments underscore Salesforce’s multifaceted approach, from philanthropy and strategic partnerships to addressing security challenges and advancing AI integration.

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