There’s certainly more diversity in parts of California, and “low funding” may refer to incentives and tax breaks given to companies to do business in an area.

North Carolina.

https://www.techelevator.com/north-carolina-tech-companies-are-thriving/#:~:text=In fact%2C Apple%2C Google%2C,creating thousands of new jobs.

Where are they going?

Easy. Home.

Remote work, despite what many of the Business Journals have been doomsaying, is still very much a viable option. So they don’t have to stay in Texas, and they can operate from wherever.