SUNNYVALE — A fledgling tech company that uses AI techniques to help major automakers produce self-driving vehicles has leased a big chunk of Sunnyvale office and research space in an expansion.
Applied Intuition has leased 219,200 square feet at a tech park on West California Avenue in Sunnyvale, according to business executives with knowledge of the transaction.
The rental deal is one of the largest office leases so far in 2025 in the South Bay.
The leasing transaction enables Applied Intuition to occupy multiple buildings in Sunnyvale Business Park, according to the sources, who asked not to be named because they were not authorized to discuss the rental agreement.
The Applied Intuition lease offers fresh evidence that the South Bay office market is in the early stages of a turnaround in rental activity on the heels of a downturn that began at the start of 2024.
Sunnyvale Business Park is an office and research tech campus near the corner of West California Avenue and North Mathilda Boulevard, according to a brochure circulated by Colliers, a commercial real estate firm that is marketing the property.
The current Applied Intuition headquarters at 82 Pioneer Way in Mountain View total about 82,000 square feet, according to a post on the LoopNet commercial property database.
Applied Intuition is slated to exit the Mountain View office space by the end of July, according to the LoopNet listing.
The rental deal is poised to help Applied Intuition greatly expand its South Bay operations since the space the company leased is more than twice as large as the site the company will exit this summer.
Founded in 2017, Applied Intuition produces software used by 18 of the 20 largest automakers worldwide, according to the tech firm’s website.
The tech company uses artificial intelligence technologies to help automakers develop self-driving vehicles and automated robots used in factories.
“Applied Intuition’s cutting-edge autonomy AI stack works with proven simulation, validation, and data tools to transform vehicles into autonomous machines,” the company states on its website.
In 2024, the company completed a funding round of $250 million and a second round of $300 million.
The two rounds of financing left Applied Intuition with a valuation of $6 billion.
Applied Intuition is convinced that its cutting-edge AI software systems are the wave of the future for vehicle development.
“Software is transforming the modern vehicle experience,” Applied Intuition states on its website.
