NJ AI Hub investment fund will provide entrepreneurs with essential resources to grow inventive businesses
TRENTON – Today, the New Jersey Economic Development Authority (NJEDA) and CoreWeavealongside other qualified investors, announced a $20 million investment to support a fund for startups associated with NJ AI Hub Strategic Innovation Center (SIC). The investment fund will help startups access capital, overcome challenges and accelerate growth, strengthening New Jersey’s position as a national leader in AI innovation.
On Monday, the NJEDA Board of Directors approved the $10 million investment in the fund, which will be matched by an equal investment from CoreWeave and affiliated investors.
“The growth of New Jersey’s innovation ecosystem creates immense opportunities for residents and entrepreneurs, helping to create jobs in growing sectors, transform communities and catalyze the creation of new startups. » said Governor Phil Murphy. “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.” »
“Under Governor Murphy’s leadership, NJEDA has used its Strategic Innovation Center initiative to support the growth of the state’s most dynamic industries, partnering with private sector leaders, universities and other stakeholders to accelerate research and strengthen entrepreneurship. » said Tim Sullivan, CEO of NJEDA. “NJEDA and CoreWeave’s investment in the NJ AI Hub will ensure that New Jersey startup founders will have access to the capital needed to expand in the state, helping to create jobs and boost local economies.”
This morning, the NJ AI Hub announcement that Plug and play will manage an accelerator program at SIC, connecting New Jersey AI startups and higher education-affiliated entrepreneurs with mentors, investors and industry partners. Plug and Play will lead select cohorts each year that will support startups at different stages of development.
NJEDA also announced today that Plug and Play has been reward a $3.8 million grant to develop and manage the upcoming AI Challenge, which will engage New Jersey residents, researchers, entrepreneurs, students and businesses to identify challenges across the state and develop AI-based software solutions. Challenge winners will work with Plug and Play on pilot testing or commercialization of the software and receive mentoring and advisory support from Plug and Play’s network of subject matter experts.
Building on its partnership with NJEDA through the New Jersey Fintech Accelerator at Stevens Institute of Technology (NJ FAST) SIC and a new multi-site CIS in Camden, Mullica Hill and Trenton, in collaboration with Rowan University, Plug and Play will leverage its global network of venture capital firms, corporate investors and innovation partners to help founders secure follow-on funding and achieve long-term growth. With more than 60 offices worldwide and partnerships with more than 550 companies, Plug and Play runs more than 100 accelerator programs per year in industries including AI, fintech, healthcare and energy.
“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.. “By combining NJEDA’s engagement with CoreWeave and the NJ AI Hub, we’re giving New Jersey startups the capital, connections and support they need to scale from first pilot to meaningful scale right here in the Garden State. We’re excited to support founders who are using AI to solve practical problems, create good jobs and continue New Jersey’s long legacy of innovation into the next decade.”
Announcement in December 2023 and founded by NJEDA, CoreWeave, MicrosoftAnd Princeton UniversityThe NJ AI Hub brings together AI researchers, industry leaders, startups, and other collaborators to advance research and development, support startup creation, advance the use of ethical AI for positive societal impact, and promote workforce development. The $20 million investment announced today will drive more private funding into AI startups, eliminating the capital and resource barriers that early-stage companies face.
“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. We are proud to partner with Governor Murphy, NJEDA and the NJ AI Hub to help make New Jersey a premier destination for the advancement of AI.”
“The launch of this $20 million fund is a critical catalyst for New Jersey AI startups,” said Liat Krawczyk, executive director of the NJ AI Hub. “It will provide critical support to entrepreneurs, helping position New Jersey for the next generation of transformative technologies.” »
The NJ AI Hub is an integral part of Governor Murphy and NJEDA’s efforts to increase the state’s resources for the AI sector. In June, NJEDA opened applications for the Next New Jersey Schedule – IAwhich provides tax credits to eligible companies investing in large-scale AI data centers and companies engaging in AI-related activities. The NJEDA also approved a dedicated AI cohort within the New Jersey Innovation Grant Program (NJIF) in 2024, which will provide income replacement grants of up to $400,000 to eligible entrepreneurial teams seeking to launch an AI-based business.
About NJEDA
The New Jersey Economic Development Authority (NJEDA) is the state’s primary agency responsible for stimulating economic growth. NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong, vibrant communities, create good jobs for New Jersey residents, and pave the way for a stronger, fairer economy. Through partnerships with a broad range of stakeholders, NJEDA creates and implements initiatives to improve the state’s economic vitality and quality of life and strengthen New Jersey’s long-term economic competitiveness.
To learn more about NJEDA resources for businesses, call NJEDA Customer Service at 844-965-1125 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, InstagramAnd LinkedIn.