Housing alone is such a huge knock against CA for new companies. Even paying somebody 500k there leaves them feeling middle class when trying to raise a family.
Perhaps a bit of an exaggeration, but in Texas they build like crazy to support population inflows. If you drive through Austin you'll see every third or fourth house is getting torn down to be rebuilt into 2-3 houses on the same plot.
Fundamentally this just gives you a lot more runway to grow.
I don't know why anybody would start a company in SF these days, aside from VC being local and sometimes requiring it.
I have no doubt Texas will overtake CA in terms of economic output, but will take decades just due to previous inertia. Also remote work may be the true winner in the end.
I do think CA is still the place you want to be if money is no object though. Unfortunately that doesn't apply for most people. There may actually be a change in political winds that blow things back the other way though, just viewing this from today's lens.