The New Jersey Economic Development Authority (NJEDA) and CoreWeave have announced a $20 million investment fund aimed at supporting startups connected to the NJ AI Hub Strategic Innovation Center. The initiative is designed to help new businesses access funding, address operational challenges, and expand their operations, reinforcing New Jersey’s position in artificial intelligence innovation.
The NJEDA Board has approved a $10 million investment into the fund, which will be matched by CoreWeave and affiliated investors.
Governor Phil Murphy commented on the development: “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. 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.”
Tim Sullivan, Chief Executive Officer of NJEDA, stated: “Under Governor Murphy’s leadership, the NJEDA has utilized its Strategic Innovation Center initiative to support growth among the state’s most dynamic industries, partnering with private sector leaders, academia, and other stakeholders to accelerate research and bolster entrepreneurship. The NJEDA’s and CoreWeave’s investment into the NJ AI Hub will ensure that startup founders in New Jersey have access to the capital needed to grow in the state, helping create jobs and boost local economies.”
Plug and Play will manage an accelerator program at the Strategic Innovation Center. This program aims to connect startups and university-affiliated entrepreneurs with mentors, investors, and industry partners through selected cohorts each year. Plug and Play has also received a $3.8 million grant from NJEDA for managing an upcoming AI Challenge that encourages residents and organizations across New Jersey to identify statewide challenges that could be addressed using AI-based solutions. Winners will receive pilot testing support as well as mentorship.
Michael Olmstead of Plug and Play said: “New Jersey is fast becoming one of the most compelling places in the country to build an AI company, and this fund makes that real for founders, not just on paper. By pairing NJEDA’s commitment with CoreWeave and the NJ AI Hub, we’re giving New Jersey startups the capital, connections, and support they need to go from first pilot to meaningful scale right here in the Garden State. We’re excited to back founders who are using AI to solve practical problems, create good jobs, and carry New Jersey’s long legacy of innovation into the next decade.”
Established by NJEDA alongside CoreWeave, Microsoft, and Princeton University in December 2023,the NJ AI Hub serves as a collaborative platform uniting researchers from academia with industry leaders focused on advancing research initiatives while fostering ethical applications of artificial intelligence.
Brian Venturo of CoreWeave noted: “New Jersey has the talent,the infrastructure,and drive to become a national leader in AI innovation.This commitment is designedto deliver real benefits for people across thestate—more opportunity,mor high quality jobs,and a stronger economy—while supporting thenext generationofAIleaders building technologythatwill improve how we liveand work.We are proudtopartnerwith GovernorMurphy,theNJEDA,andtheNJA IHubtohelp makeNewJerseya top destinationforAIadvancement.”
Liat Krawczyk,NJAIHubExecutive Director added:“The launchofthis$20millionfundisan essentialcatalystforAIstartupsinNewJersey.ItwillprovidecriticalsupporttoentrepreneurshelpingtopositionNewJerseyforthenextgenerationoftransformativetechnologies.”
The fund builds on NJEDA’s ongoing efforts such as providing low-interest financing options,promoting economic growth, diversity,international partnerships, tax credits,investment incentives,and supporting job creation throughout thestate.NJEDAcollaborateswithglobaleconomicpartnersandsupportsinitiativeslike NextNewJerseyProgram–AIandtheInnovationFellowsProgram,specificallytargetingAIdatacentersandnewbusinessesdrivenbyartificialintelligence.As partofthepublicsector,NJEDAdriveseconomicandcommunitydevelopmentthroughpolicytoolsandinternationalcollaboration.
In June,the authority opened applications forthe Next New Jersey Program – AI offering tax creditsfor investmentsinlarge-scaleAIdatacenters.AcohortwithinitsInnovation Fellows ProgramwillalsoprovidesignificantgrantsforentrepreneurteamslaunchingAI-drivenbusinesses.
