Pittsburgh tech economy shows optimism, major AI investments

The state of Pittsburgh’s tech economy in 2024 is undeniably optimistic. 

That’s clear from the millions of dollars that poured into the region this year for workforce development, attracting new businesses and fostering growth of key sectors, like artificial intelligence, robotics and health tech. 

Technical.ly ramped up its coverage of Pittsburgh’s growing tech scene this year. Now, we’re looking back at 2024 to see what investments might pay out next year and what the future of Pittsburgh’s tech ecosystem could look like. 

New AI developments dominate Pittsburgh conversations

A growing number of advocates pushed for Pittsburgh to become a hub of AI innovation this year.

Governor Josh Shapiro’s administration was certainly one of the leading supporters of this effort. He made that clear as the keynote speaker at the inaugural AI Summit, hosted at Pittsburgh’s Bakery Square. 

The summit came shortly after AI giant Nvidia announced it would create its first “AI Tech Community” in Pittsburgh. While details are still uncertain, the announcement was a clear signal that Pittsburgh is becoming a focal point for AI innovation, with major players in the industry recognizing the city’s growing influence and potential in the field. 

There were also major investments in AI-powered startups, like $30 million raised for health tech company Abridge and a $300 million investment in robotics startup Skild AI, raising its valuation to $1.5 billion. 

Pittsburgh’s tech ecosystem is dreaming big, positioning itself as a key player in the rapidly evolving AI landscape and laying the groundwork for its future. 

A push for neighborhood investment and revitalization 

A vision for a revitalized version of Pittsburgh’s downtown also took shape this year. 

While the Golden Triangle is technically the economic center of Southwestern Pennsylvania, our RealLIST Connectors pointed out that startups in Pittsburgh’s tech ecosystem are more attracted to neighborhoods like Lawrenceville, the Strip District and Oakland. 

Local leaders agree the area needs investment to attract new business and reach its full potential. 

In October, a coalition of organizations announced a private, public and nonprofit partnership to invest $600 million into Pittsburgh’s downtown. If successful, which the Allegheny Conference on Community Development closely tracks, this revitalization could set the stage for a new chapter in economic growth. 

Still, developers continue to make investments in other neighborhoods, too, like rebranding Bakery Square as AI Avenue.

Major hardships and failure-fueled lessons in local tech

For all the growth and potential in Pittsburgh’s tech economy this year, there were also hardships. There were layoffs, like the 550 employees who were let go in May from autonomous vehicle startup Motional or the 7% workforce cut at edtech company Niche. 

At the same time, Pennsylvania is facing a decline in population size and an aging population, which is causing labor shortages in key industries like manufacturing and healthcare. 

The changing workforce landscape requires new support for different paths to tech jobs, and it seems like immigrants are fulfilling these labor needs according to reports released this year. 

There have been financial hardships for startups raising money in the region, too.

While venture capital investments trended upward and are on track to keep growing, Pittsburgh is still lacking local VC investors. Without local backing, the region will continue to miss out on valuable returns from its tech ecosystem. 

Even projects that technically failed offered small successes and important lessons for the future. For example, space startup Astrobtic’s Peregrine Lander did not reach the moon, but multiple NASA payloads were able to collect data while in flight. 

As Pittsburgh’s tech economy continues to evolve, the city’s resilience and ability to learn from both its successes and setbacks will determine how well it secures its place as a leading city in the tech world.

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