NJ Launches $20M Fund to Accelerate AI Startups

New Jersey’s AI Hub investment fund aims to fuel early-stage innovation, provide capital access, and strengthen the state’s leadership in artificial intelligence and emerging technologies.

MORRISTOWN, N.J. — The New Jersey Economic Development Authority (NJEDA), in partnership with cloud computing company CoreWeave and other private investors, has announced the creation of a $20 million investment fund to support emerging artificial intelligence (AI) startups affiliated with the NJ AI Hub Strategic Innovation Center (SIC). The initiative is intended to bolster entrepreneurship, job creation, and innovation in one of the country’s fastest-growing tech sectors.

The NJEDA Board officially approved a $10 million public investment in the fund on December 15, 2025. That amount will be matched by CoreWeave and affiliated investors, bringing the total fund to $20 million. The fund will target early-stage AI companies, helping them overcome capital access barriers and scale their operations in New Jersey.

Building the Garden State’s AI Ecosystem

Governor Phil Murphy praised the initiative as a catalyst for job growth and innovation:

“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.”

The investment builds on the NJEDA’s broader Strategic Innovation Center initiative, which fosters collaboration among the private sector, academia, and entrepreneurs to strengthen New Jersey’s innovation infrastructure. It also positions the NJ AI Hub, launched in December 2023 by the NJEDA, CoreWeave, Microsoft, and Princeton University, as a national model for AI research, workforce development, and ethical tech deployment.

Plug and Play to Manage Accelerator and Statewide AI Challenge

As part of the announcement, Plug and Play, a global innovation platform, will manage the accelerator program at the NJ AI Hub SIC. The program will run startup cohorts annually, connecting founders with mentors, investors, and corporate partners.

Additionally, Plug and Play has been awarded a $3.8 million NJEDA grant to oversee the New Jersey AI Challenge, a statewide competition encouraging residents, researchers, and entrepreneurs to develop AI-powered software solutions to real-world problems. Winning teams will receive technical support and pilot-testing opportunities with Plug and Play’s expansive global network.

“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.

Plug and Play currently operates more than 100 accelerator programs worldwide across key sectors, including AI, fintech, health, and energy. In New Jersey, it already runs the NJ Fintech Accelerator at Stevens Institute of Technology (NJ FAST) and will manage a new multi-location SIC in Camden, Mullica Hill, and Trenton in collaboration with Rowan University.

Fostering Innovation Through Investment and Support

The fund is designed to draw more private capital into New Jersey’s growing AI economy and ensure local startups have access to the resources needed to succeed.

“New Jersey has the talent, the infrastructure, and the drive to become a national leader in AI innovation,” said Brian Venturo, Co-Founder and CSO at CoreWeave. “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."

“The launch of this $20 million fund is an essential catalyst for AI startups in New Jersey,” added Liat Krawczyk, Executive Director of the NJ AI Hub.

Part of a Broader AI Strategy

The announcement aligns with recent NJEDA programs targeting the AI sector:

Next New Jersey Program – AI: Offers tax credits to businesses investing in AI infrastructure and large-scale data centers.
New Jersey Innovation Fellows (NJIF): Includes a dedicated AI cohort in 2024, providing up to $400,000 in income replacement grants to teams launching AI-driven startups.

Together, these efforts aim to cement New Jersey’s place as a national AI innovation hub, while creating inclusive pathways for entrepreneurs and technologists from diverse backgrounds.

For more information on the NJ AI Hub and upcoming programs, visit www.njeda.gov.