The Next New Jersey Program —AI, a $500 million initiative by the New Jersey Economic Development Authority that aims to attract high-tech investment in artificial intelligence, is more than just a vehicle to stimulate innovation in the state.
It’s another example of how state officials are trying to show AI leaders that New Jersey is building an AI ecosystem that goes far beyond tax incentives.
So said Tim Sullivan, the CEO of the EDA.
“At this point, AI and its rapid adoption isn’t even the wave of the future, it’s the wave of the present — we want to continually show we are a leader in its evolution,” he said.
The program almost certainly will add to the efforts of the AI Hub at Princeton, a collaboration announced in February with three founding partners: Princeton University, Microsoft and CoreWeave.
Here’s how it works.
The Next New Jersey Program – AI, which aims to stimulate innovation and boost productivity, requires that a business commits to creating at least 100 new full-time jobs and meets a minimum capital investment of $100 million to be eligible for tax credits.
To do so, the business must enter into a collaborative relationship with a New Jersey-based public or private research university, technology startup, incubator, accelerator or similar entity.
“New Jersey, under Gov. (Phil) Murphy’s leadership, is doing everything we can to position our economy for outperformance in both the adoption and implementation of AI and the formation of new businesses that AI is powering,” Sullivan told BINJE. “This is another step in that process.”
It’s not the only one.
THE EDA also recently announced the AI Innovation Challenge Administration Grant Program, which will provide $3.8 million in grant funding to an eligible administrator through a competitive application process.
The administrator will develop and manage a statewide AI Challenge and disburse sub-grant awards to challenge winners. The EDA-approved administrator’s creation of the AI Challenge will promote participation from a diverse array of stakeholders across New Jersey to identify challenges throughout the state, and leverage AI to develop innovative software solutions that advance social and public good.
The AI Challenge will include an initial competitive event and virtual showcase in which participants will create and present AI-based software prototypes. Winners from the initial competitive event will continue developing their prototypes toward a minimum viable product and present their solutions at a demo day event. After the demo day event, winners will continue working with the administrator on pilot testing or commercialization of the AI-based software solution.
Sullivan said the two programs are as strong as any in the country.
“Both programs build on Gov. Phil Murphy’s goal of establishing New Jersey as a leader in AI by encouraging private investment into the state’s growing AI sector and promoting collaboration between New Jersey’s citizens and government in AI innovation,” he said.
These programs follow the creation of a dedicated AI cohort within the New Jersey Innovation Fellows Program in 2024, which aims to provide income replacement grants of up to $400,000 to eligible entrepreneur teams looking to launch an AI-driven business.
Murphy said the state won’t stop in its pursuit of AI innovation.
“AI presents a tremendous economic opportunity for New Jersey, poised to create good-paying jobs, catalyze new discoveries, grow our startup community and foster long-term economic growth,” he said. “New Jersey’s continued investment in the sectors of the future will pay dividends for generations to come, setting the Garden State on a path of economic strength and prosperity.”
