Midjourney, best known for generating AI-created images, is making an unexpected leap into healthcare by opening a luxury spa equipped with full-body medical scanners in San Francisco's Union Square. The artificial intelligence startup has leased 23,000 square feet across four floors at 300 Grant Avenue for what it calls a "gold-plated bathhouse" that will combine spa amenities with advanced health imaging technology.

What Is Midjourney's New Health Division Planning?

Midjourney, which launched in 2022 as a research lab focused on AI image generation, is entering the medical technology space through a new division called Midjourney Medical. The company plans to open the spa in late 2027, featuring a luxurious environment designed to make health scanning feel less clinical and more like a wellness experience. The facility will include cold plunges, saunas, hot tubs, and amber lighting throughout a "futuristic gold-plated bathhouse with curved surfaces, an abundance of waterfalls, and water ripples reflecting off the walls," according to renderings cited by the San Francisco Standard.

The centerpiece of the spa will be 10 full-body scanners similar to MRI machines that require guests to fully submerge themselves in water to collect health data. The company has not disclosed the cost of individual scans, and the scanners do not currently have FDA approval.

How Ambitious Are Midjourney's Medical Expansion Plans?

Midjourney's vision for Midjourney Medical extends far beyond a single San Francisco location. The company aims to deploy 50,000 of these scanning machines across the world over the next six years, with a goal of conducting 1 billion individual scans annually. To achieve this scale, the company estimates it would need approximately 5,000 spa locations worldwide, requiring an investment of roughly $20 billion.

"I don't want to feel like I'm going to a doctor's office. I want to feel like I'm going somewhere that's nice. You're going to have to get wet, but there are lots of nice situations to get wet," said David Holz, CEO of Midjourney.

David Holz, CEO, Midjourney

This ambitious expansion reflects a broader strategy by Midjourney to move beyond its core AI image-generation business. The 10-year lease at Union Square is self-funded by the company, indicating confidence in the medical imaging concept.

Why Is Union Square Significant for This Announcement?

The location choice matters because San Francisco's Union Square, a luxury retail district, has been recovering from pandemic-era struggles. During the pandemic, vacancy rates in Union Square soared to 22 percent, but the neighborhood is now bouncing back. Recent foot traffic data shows encouraging signs of recovery.

• Foot Traffic Growth: Foot traffic in the Union Square submarket jumped 9.6 percent in May 2026 compared to May 2025, according to Cushman and Wakefield's quarterly report.
• Declining Vacancy: Vacancy rates fell 2.8 percent, indicating renewed interest in the district from major retailers and companies.
• Major Retailer Returns: Telecommunications company AT&T and fashion resale store The RealReal both announced reopenings in February 2026 at locations they had previously closed in 2023.

The building at 300 Grant Avenue, where Midjourney will operate its spa, opened in 2021 as one of the first new ground-up properties in Union Square in decades. It previously housed luxury clothier Arc'teryx and currently serves as a showroom for diamond firm Brilliant Earth.

How to Understand Midjourney's Strategic Shift

• Business Diversification: Midjourney is moving beyond AI image generation into healthcare technology, suggesting the company sees medical imaging as a high-growth opportunity aligned with its computational capabilities.
• Consumer Experience Focus: Rather than positioning medical scanning as a clinical procedure, Midjourney is designing the spa as a luxury wellness destination, potentially lowering barriers to adoption for health-conscious consumers.
• Long-Term Capital Commitment: The estimated $20 billion investment and 5,000-location expansion plan indicate Midjourney views this as a core business pillar, not a side experiment or temporary venture.

The deal was brokered by JLL, a major commercial real estate firm, though the landlord and specific lease terms were not disclosed. The spa will occupy half of the four floors and the basement, with the remaining space presumably available for other uses or future expansion of Midjourney's operations.

Midjourney's entry into medical technology represents a significant departure from its identity as an AI image-generation platform. The company's decision to anchor this expansion in San Francisco's recovering Union Square suggests confidence both in the health-imaging market and in the neighborhood's continued revitalization as a hub for innovation and luxury retail.