Just my random opinion... It probably matters more if you're looking for venture capital, or if you want to work for one of the top (and Bay Area-based) companies in the field. Although a lot of major AI companies (including OpenAI) are in the Bay Area.

In general I think it's limiting if you confine your job search to one area. (After all, your odds double if you try two different locations.) And there are other large tech cities -- Seattle, New York, etc.

There is also the possibility of a telecommuting position -- though more of those tend to be "hydrid" than 100% remote. Still, more of those than there were five years ago.