New Jersey is launching a $20 million investment fund aimed at supporting artificial intelligence startups. The fund, known as the NJ AI Hub Fund, will give early-stage companies access to capital, mentorship, and business support to foster growth within the state. This initiative was announced on Tuesday by the New Jersey Economic Development Authority in partnership with CoreWeave, an AI infrastructure company.
The NJ AI Hub Fund is designed to bolster startups connected to the state’s NJ AI Hub Strategic Innovation Center, which was launched in 2023 at Princeton University. The center aims to promote the ethical use of AI and support technological advancements throughout New Jersey. Governor Phil Murphy emphasized that the initiative will create jobs, strengthen local economies, and enhance New Jersey’s reputation as an innovation leader.
“The growth of New Jersey’s innovation ecosystem creates immense opportunities for residents and entrepreneurs, helping create jobs in growing industries, transform communities, and catalyze new startup creation,” said Murphy. “With this new Hub Fund, along with our ongoing efforts to shape AI’s future, we are reviving the Garden State’s legendary legacy of innovation and, in the process, making our state more competitive in the global economy for decades to come.”
The initiative also includes a significant role for Plug and Play, an international startup accelerator that will manage an AI-focused accelerator program at the NJ AI Hub. This program will pair selected startups with mentors, investors, and industry partners to help them refine their products and attract further funding. Plug and Play plans to run startup cohorts annually to support companies at various stages of development.
In addition to the accelerator, Plug and Play has secured a $3.8 million grant to organize a statewide challenge. This initiative will invite residents, students, researchers, and businesses to propose AI technologies aimed at addressing challenges faced by New Jersey. Winning teams will have the opportunity to pilot test or commercialize their ideas with assistance from AI experts.
New Jersey’s investment in the AI sector aligns with similar efforts in other states. For instance, the Massachusetts AI Hub, operated by the Massachusetts Technology Collaborative, provides grants and challenges to nurture AI development. A recent initiative, the Massachusetts AI Models Innovation Challenge, has allocated over $3 million for the development of AI models in critical economic sectors.
Meanwhile, San Jose, California, is encouraging the establishment of AI businesses through its AI Startup Incentive Program, which awards grants to local startups. New York has also expanded its Empire AI Consortium throughout the year. This project, funded by both the state and philanthropic sources, aims to advance supercomputing and AI research for the public good.
As states across the U.S. increasingly recognize the potential of AI technologies, New Jersey’s recent initiatives position it as a competitive player in the evolving landscape of artificial intelligence. With support for startups and a focus on ethical development, the NJ AI Hub Fund may significantly contribute to the state’s innovation ecosystem, facilitating growth and collaboration among emerging technology companies.
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