TRENTON, N.J. — The New Jersey Economic Development Authority and cloud computing company CoreWeave have announced a $20 million investment fund aimed at supporting artificial intelligence startups connected to the NJ AI Hub Strategic Innovation Center, state officials said.
The fund is designed to help early-stage companies access capital, overcome growth challenges and accelerate development, bolstering New Jersey’s position as a national center for artificial intelligence innovation. On Monday, the NJEDA board approved a $10 million investment into the fund, which will be matched by an equal contribution from CoreWeave and affiliated accredited investors.
“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 Gov. Phil 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.”
NJEDA Chief Executive Officer Tim Sullivan said the investment builds on the authority’s Strategic Innovation Center initiative, which pairs public resources with private-sector and academic partners.
“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,” Sullivan 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.”
Alongside the fund announcement, officials said Plug and Play will manage an accelerator program at the NJ AI Hub, connecting New Jersey AI startups and university-affiliated entrepreneurs with mentors, investors and industry partners. The accelerator will run multiple cohorts each year to support companies at varying stages of development.
The NJEDA also announced that Plug and Play has been awarded a $3.8 million grant to develop and oversee a statewide AI Challenge. The initiative will engage residents, researchers, students, entrepreneurs and companies to identify pressing challenges and create AI-based software solutions. Winners will receive mentorship and advisory support and may work with Plug and Play on pilot testing or commercialization.
“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,” said Plug and Play Partner and Chief Revenue Officer Michael Olmstead. “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.”
The NJ AI Hub was announced in December 2023 and founded by the NJEDA in partnership with CoreWeave, Microsoft and Princeton University. The hub brings together researchers, startups and industry leaders to advance AI research and development, promote ethical AI use and support workforce development.
CoreWeave Co-Founder and Chief Strategy Officer Brian Venturo said the investment reflects confidence in the state’s potential.
“New Jersey has the talent, the infrastructure, and the drive to become a national leader in AI innovation,” 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.”
NJ AI Hub Executive Director Liat Krawczyk said the fund will play a critical role in advancing the state’s AI ecosystem.
“The launch of this $20 million fund is an essential catalyst for AI startups in New Jersey,” Krawczyk said. “It will provide critical support to entrepreneurs, helping to position New Jersey for the next generation of transformative technologies.”
The fund is part of a broader push by the Murphy administration and the NJEDA to expand state support for the AI sector, including tax credits through the Next New Jersey Program – AI and a dedicated AI cohort within the New Jersey Innovation Fellows Program, which offers income replacement grants to qualifying startup teams.
