The tech elite are abandoning Silicon Valley in droves because of ‘groupthink’ and out-of-control living costs— here’s where they’re headed

peter thiel new zealand

Silicon Valley is on the brink of an exodus.

Members of the tech elite from Peter Thiel to Tim Ferriss are leaving San Francisco and the peninsula to the south — still the global hub of tech finance and innovation — to escape the self-described groupthink and arrogance of the Valley.

A recent article in The New York Times declared, “Silicon Valley is over.” The author followed a dozen venture capitalists on a three-day bus trip through the Midwest, in pursuit of hot startups in underrated areas of the country. They marveled at the cheap home prices in cities like Detroit, Michigan, and Madison, Wisconsin, compared with the extreme cost of living in the Bay Area.

San Francisco lost more residents than any other US city in the last quarter of 2017, according to a report from real-estate site Redfin. Data suggests the great migration is far from over.

Last month, 49% of Bay Area residents said they would consider leaving California because of the cost of living, according to a survey of 500 residents by public-relations firm Edelman.

These are some of the high-profile defectors who have left Silicon Valley in recent years — and where they’re headed.

SEE ALSO: A Silicon Valley billionaire’s dream of a floating libertarian utopia may have finally been killed

Peter Thiel, one of Silicon Valley’s biggest success stories, became a social outcast in tech after the libertarian billionaire-investor supported Donald Trump’s presidential campaign.

Source: Los Angeles Times

In February, Thiel revealed he’s leaving the San Francisco Bay Area and moving to Los Angeles. His venture firm and foundation will also set up headquarters in Los Angeles.

Source: Los Angeles Times

In March, Thiel told The New York Times that the groupthink happening in the Valley can be dangerous. “Network effects are very positive things, but there’s a tipping point where they fall over into the madness of crowds,” Thiel said.

Source: New York Times

See the rest of the story at Business Insider