webAI has expanded its footprint in downtown Austin by leasing additional space at 515 Congress Avenue, a 26-story office building. The company now occupies about 40,000 square feet across the top floor, ground level, and several intermediate floors. webAI will also install its signage near the top of the building at the intersection of Sixth Street and Congress Avenue, replacing the existing PMG marquee.
The office tower is managed by Stream Realty Partners and owned by KBS Realty Advisors, based in Newport Beach, California. Since 2015, KBS has invested over $10 million in renovations to modernize the property, which was originally built in 1974.
webAI began with a lease on the top floor two years ago and has gradually expanded as it grows. Co-founder and CEO David Stout said that the headquarters will remain on the 26th floor with a private elevator, while an engineering lab with freight elevator access for specialized hardware will be located on the ground floor.
This expansion follows a recent funding round announced on January 14 that values webAI at $2.5 billion. This marks significant growth from its previous valuation of approximately $700 million when it emerged in 2024. Investors include Time Ventures, Atreides Management, Forerunner, and Oxcart Ventures.
Founded on the principle that artificial intelligence can operate outside large centralized data centers, webAI offers an on-device system allowing enterprises to use AI while keeping sensitive information local rather than sending it to cloud servers. The company says this approach provides automation and generative AI capabilities without exposing proprietary or customer data externally.
Currently employing around 150 people—most of whom are based in Texas—webAI expects to increase its workforce to about 200 soon. The firm also maintains offices in Virginia for public-sector work and Michigan. Last fall, Jason Rathje joined as president of public sector operations; he previously worked as an MIT research scientist and held leadership roles at both the Office of Strategic Capital and AFWERX within the U.S. Air Force.
webAI is expanding into sectors such as aviation and connected devices while preparing to launch a consumer product designed to process personal data locally using AI technology.
“Founded on the idea that AI doesn’t need to live in massive, centralized data centers, webAI has developed an on-device system designed to let enterprises deploy AI, while keeping sensitive data local and private. It gives companies the flexibility of automation and generative AI without handing over proprietary or customer data to the cloud,” according to webAI’s website.
