Pittsburgh tech's future isn't guaranteed, CEO warns
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Don't celebrate Pittsburgh's tech boom just yet, says one unicorn CEO — not until the city can build something that lasts.
Why it matters: Pittsburgh's tech growth appears stronger than ever, but Gecko Robotics CEO Jake Loosararian believes the region has work to do to build a self-sustaining tech "flywheel" to prevent unicorns from leaving town and taking their investment and local jobs with them.
Context: The city boasts seven startups valued at over $1 billion, including Gecko, language learning app Duolingo, autonomous vehicle company Aurora, healthcare scribe Abridge AI, robotic AI firm Skild AI, medical device manufacturer Krystal Biotech and autonomous truck builder Stack AV.
Yes, but: Loosararian tells Axios he is skeptical that a company's success will lead to the tech ecosystem civic leaders have been dreaming of, saying unicorns could grow here and then sell, taking the economic boom with them.
- "In reality, they are only here when it is convenient for them to be here," he said.
Flash back: Loosararian points to Pittsburgh's autonomous vehicle boom — and eventual bust — as a cautionary tale.
- Starting around 2015, major players like Uber, Argo AI (backed by Ford), and others set up self-driving operations in the city. But by 2022, nearly all had shut down, moved out or been sold.
What they're saying: A graduate of nearby Grove City College, Loosararian said he chose to anchor Gecko in Pittsburgh because it was close to the robotics company's base in the energy sector, it was cheaper than the Bay Area and he wanted to help Pittsburgh grow into a tech and robotics powerhouse.
- "Silicon Valley became Silicon Valley because it became a mafia of companies built there and a vicious cycle of success," he said.
Between the lines: Loosararian believes Pittsburgh's best chance for a sustainable tech economy is for tech companies to participate in the outside investments already flowing into Pittsburgh — citing the U.S. Steel investment promised by Nippon and the potential to build data centers powered by natural gas.
- "Energy and infrastructure need to be something that defines the city."
State of play: With President Trump visiting Carnegie Mellon University next week to discuss AI and its role in boosting the energy sector, Loosararian said the local tech sector needs to brainstorm how it can ride the wave of attention the region is getting.
- "We have a moment when we matter politically. We have to take advantage of that. That moment doesn't last forever," he said.
The other side: Abridge CEO Shiv Rao lives in Pittsburgh, and his AI medical documentation platform has always been based in the city and it is committed to Pittsburgh's future, a company spokesperson said.
What's next: Tech leaders, including Loosararian, Rao and others, will meet with Sen. Dave McCormick and Gov. Josh Shapiro next Monday at the AI Horizons Pittsburgh event in the Strip District to discuss the future of tech in Pittsburgh.
- Trump will attend the Pennsylvania Energy and Innovation Summit with McCormick at CMU next Tuesday.