New Jersey is making bold moves in the artificial intelligence arms race.
The state has launched a $20 million AI investment fund with cloud computing company CoreWeave. The funds are aimed at backing high-growth startups tied to the New Jersey AI Hub. The rapid growth of AI is impossible to ignore and New Jersey wants to compete in the market.
The fund targets early-stage companies developing AI across healthcare, finance, infrastructure and other high-impact sectors. For founders in the AI space, the biggest obstacle is often capital. The NJ AI fund is designed to remove—or alleviate—those barriers.
The New Jersey Economic Development Authority approved $10 million for the effort—CoreWeave and affiliated investors matched the investment. The primary focus of the money is to help startups scale without leaving New Jersey.
But the initiative goes beyond writing checks.
The New Jersey AI Hub has partnered with Plug and Play, a global startup accelerator with longstanding ties to venture capital and Fortune 500 companies. Beginning next year, Plug and Play will run AI-focused accelerator cohorts in West Windsor, connecting founders with investors, mentors and industry partners.
Startups won’t just pitch ideas. They’ll test products, run pilots and prepare for commercialization.
The state is also launching a statewide AI Challenge—backed by a $3.8 million grant—inviting students, researchers, entrepreneurs and companies to build AI solutions to real-world problems in New Jersey. Those who win will receive financial and logistical support to bring their software to market.
The NJ AI Hub itself was founded by Princeton University, Microsoft, CoreWeave and the State of New Jersey. It recently landed a major win by becoming one of only two global sites selected to host Microsoft’s advanced Discovery AI platform. The endorsement puts New Jersey on the global AI map.
At a time when states across the nation are fighting for AI talent and investment, New Jersey is betting that speed, capital and infrastructure will matter more than hype alone.
The $20 million fund signals that the state is serious about becoming a hub for AI investment. If it pays off, New Jersey won’t just attract AI startups; instead, the state could define where the industry heads next.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.