By: Jack O’Keeffe
The New Jersey Economic Development Authority (NJEDA) and CoreWeave on Dec. 15 announced a $20 million fund to back AI startups tied to the NJ AI Hub Strategic Innovation Center.
“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,” NJEDA said in a press release, after CoreWeave and affiliated investors matched its $10 million contribution.
The Hub Fund is intended to help early-stage companies scale in New Jersey as part of a broader AI growth strategy. NJ AI Hub Executive Director Liat Krawczyk called the $20 million fund “an essential catalyst for AI startups in New Jersey.”
“The NJEDA’s and CoreWeave’s investment in 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,” NJEDA Chief Executive Officer Tim Sullivan said.
CoreWeave Co-Founder and Chief Strategy Officer Brian Venturo added that the commitment aims to deliver “more high-quality jobs, and a stronger economy,” while supporting “the next generation of AI leaders.”
As part of the rollout, NJEDA tapped Plug and Play to manage the Strategic Innovation Center accelerator, which will run multiple cohorts each year and connect founders with mentors, investors, and corporate partners. NJEDA also awarded Plug and Play a $3.8 million grant to design and run an “AI Challenge” seeking software solutions to state and community problems, with winners receiving pilot support and mentorship.
“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,” said Plug and Play Partner and Chief Revenue Officer Michael Olmstead. “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.”