The N.J. Economic Development Authority and CoreWeave announced Monday that they are making a $20 million investment to support a fund for startups at the NJ AI Hub in Princeton.
The investment fund will help startups access capital, overcome challenges, and accelerate growth, strengthening New Jersey’s standing as a national leader in AI innovation.
The funding comes from the EDA Board (which approved the $10 million investment into the fund Monday afternoon) and CoreWeave (and affiliated investors), who matched the investment.
The AI Hub is one of a dozen Strategic Innovation Centers created by the EDA under Gov. Phil Murphy’s watch.
Murphy obviously was thrilled.
“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,” he said. “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.”
EDA CEO Tim Sullivan shared his enthusiasm.
“Under Gov. Murphy’s leadership, the EDA 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,” he said.
“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.”
The announcement came hours after the N.J. AI Hub announced that Plug and Play will manage an accelerator program at the SIC, connecting New Jersey’s AI startups and higher-ed-affiliated entrepreneurs with mentors, investors, and industry partners. Plug and Play will run selected cohorts each year that support startups at different stages of development.
The EDA also announced today that Plug and Play has been awarded a $3.8 million grant to develop and manage the upcoming AI Challenge, which will engage New Jersey residents, researchers, entrepreneurs, students, and companies to identify challenges across the state and develop AI-based software solutions. Winners of the challenge will work with Plug and Play on pilot testing or commercialization of the software and receive mentorship and advisory support from Plug and Play’s network of subject matter experts. Building on its partnership with the NJEDA through the existing New Jersey Fintech Accelerator at Stevens Institute of Technology and a new multi-location SIC 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 globally and partnerships with more than 550 corporations, Plug and Play runs more than 100 accelerator programs annually across sectors like AI, fintech, health, and energy.
“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,” Plug and Play Partner and Chief Revenue Officer Michael Olmstead said.
“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.”
Announced in December 2023 and founded by the EDA, CoreWeave, Microsoft and Princeton, the NJ AI Hub brings together AI researchers, industry leaders, start-up companies, and other collaborators to advance research and development, bolster startup creation, advance the use of ethical AI for positive societal impact, and promote workforce development.
The $20 million investment announced today will foster further private capital funding into AI startups, eliminating barriers to capital and resources faced by early-stage companies
“New Jersey has the talent, the infrastructure, and the drive to become a national leader in AI innovation,” CoreWeave Co-founder Brian Venturo said. “This commitment is designed to deliver real benefits for people across the state, more opportunity, more high-quality jobs, and a stronger economy, while supporting the next generation of AI leaders building technology that will improve how we live and work.
“We are proud to partner with Governor Murphy, the NJEDA, and the NJ AI Hub to help make New Jersey a top destination for AI advancement.”
AI Hub Executive Director Liat Krawczyk said the $20 million fund will be an essential catalyst for AI startups in New Jersey.
“It will provide critical support to entrepreneurs, helping to position New Jersey for the next generation of transformative technologies,” she said.
