New Jersey’s AI Hub Investment Fund aims to fuel early-stage innovation, provide access to capital, and strengthen the state’s leadership in artificial intelligence and emerging technologies.
MORRISTOWN, New Jersey — The New Jersey Economic Development Authority (NJEDA), in partnership with a cloud computing company CoreWeave and other private investors, announced the creation of a $20 million investment fund to support emerging artificial intelligence (AI) startups affiliated with the NJ AI Hub Strategic Innovation Center (SIC). The initiative aims to strengthen entrepreneurship, job creation and innovation in one of the fastest growing technology sectors in the country.
The NJEDA Board of Directors has officially approved a A public investment of 10 million dollars in the fund on December 15, 2025. This amount will be matched by CoreWeave and affiliated investorsbringing the total fund to $20 million. The fund will target early-stage AI companies, helping them overcome barriers to accessing capital and expand their operations in New Jersey.
Building the Garden State’s AI ecosystem
Governor Phil Murphy hailed the initiative as a catalyst for job growth and innovation:
“With this new Hub Fund, along with our continued efforts to shape the future of AI, we are reviving the Garden State’s legendary legacy of innovation and, in doing so, making our state more competitive in the global economy for decades to come.” »
Investment builds on NJEDA’s broader strategy Strategic Innovation Center Initiativewhich fosters collaboration between the private sector, academia and entrepreneurs to strengthen New Jersey’s innovation infrastructure. It also positions the New Jersey AI Centerlaunched in December 2023 by NJEDA, CoreWeave, Microsoft and Princeton University, as a national model for AI research, workforce development and ethical technology deployment.
Plug and Play to Manage the Statewide AI Accelerator and Challenge
As part of the announcement, Plug and Playa global innovation platform, will manage the NJ AI Hub SIC Accelerator Program. The program will run cohorts of startups each yearconnecting founders with mentors, investors and corporate partners.
Additionally, Plug and Play received a $3.8 million NJEDA grant to supervise the New Jersey AI Challengea statewide competition encouraging residents, researchers and entrepreneurs to develop AI-based software solutions to solve real-world problems. Winning teams will benefit from technical support and pilot testing opportunities through Plug and Play’s extensive global network.
“New Jersey is poised to become one of the most attractive places in the country to start an AI company, and this fund makes that real for founders, not just on paper.” said Michael Olmstead, Plug and Play Partner and Chief Revenue Officer.
Plug and Play currently runs more than 100 accelerator programs globally across key industries including AI, fintech, healthcare and energy. In New Jersey, it already manages the NJ Fintech Accelerator at Stevens Institute of Technology (NJ FAST) and will manage a new multi-site CIS at Camden, Mullica Hill and Trenton in collaboration with Rowan University.
Fostering innovation through investment and support
The fund is designed to attract more private capital in New Jersey’s growing AI economy and ensure local startups have access to the resources needed to succeed.
“New Jersey has the talent, infrastructure and drive to become a national leader in AI innovation. » said Brian Venturo, co-founder and CSO at CoreWeave. “This commitment is designed to deliver real benefits to citizens across the state, more opportunity, more high-quality jobs and a stronger economy, while supporting the next generation of AI leaders who are creating technologies that will improve the way we live and work.”
“The launch of this $20 million fund is a critical catalyst for New Jersey AI startups,” added Liat Krawczykexecutive director of the NJ AI Hub.
Part of a broader AI strategy
The announcement aligns with recent NJEDA programs targeting the AI sector:
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Next New Jersey Schedule – IA: Offers tax credits to companies that invest in AI infrastructure and large-scale data centers.
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New Jersey Innovation Fellows (NJIF): Includes a dedicated AI cohort in 2024, providing up to $400,000 in income replacement grants to teams launching AI-based startups.
Together, these efforts aim to cement New Jersey’s place as a national AI innovation hubwhile creating inclusive pathways for entrepreneurs and technologists from diverse backgrounds.
For more information about the NJ AI Hub and upcoming programs, visit www.njeda.gov.