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wrote in a Nov. 12 memo to the
EDA board. “This investment will
support the growth of AI research,
development and commercialization,
further establishing New Jersey
as a leading hub for cutting-edge
AI technologies. This commitment
refl ects the company’s sustained
focus on building strategic,
innovation-led partnerships that
support the growth and resilience of
New Jersey’s AI ecosystem.”
The $250 million tax credit award
is the fi rst under the Next New
Jersey Program – AI, which is
aimed at drawing signifi cant capital
investment, creating high-paying
jobs and cementing New Jersey’s
position as a leader in the AI industry
economy, according to the EDA.
Eligible businesses include those
investing in large-scale AI data
centers and AI-related development
projects including, but not limited to,
visual perception, speech recognition,
decision-making, translation between
languages and generative AI.
Murphy signed the offering into law
in July 2024, allowing the authority to
leverage $500 million of uncommitted
funds from the Aspire and Emerge
programs that were created by the
New Jersey Economic Recovery Act
of 2020.
“AI has already started to revolutionize
our everyday lives, and New Jersey
is capitalizing on this moment
to ensure we establish ourselves
as a frontrunner in generative AI
innovation,” Murphy said in a prepared
statement at the time of the bill
signing. “The creation of this program
will support the growth of AI-related
businesses, which could lead to
scientifi c breakthroughs and lifesaving
discoveries right in our backyard.
AI will be a transformative industry
that will change lives and grow our
economy, and New Jersey is ready to
take the lead.”
CoreWeave, which went public earlier
this year, also voiced its support for
the Next New Jersey Program – AI as
the law was being enacted.
“The signing of this bill is defi nitive
proof that New Jersey is open for
AI business,” said Brian Venturo,
the company’s co-founder and
chief strategy offi cer. “This not only
reinforces New Jersey’s heritage as
a state of innovators but also paves
the way for signifi cant advancements
and opportunities in AI development.
As the AI Hyperscaler, CoreWeave
™ 27
is proud to be headquartered here
and excited to continue driving this
industry forward.”
The EDA, meantime, noted that
CoreWeave’s commitment in
Kenilworth represents an economic
investment that “substantially
exceeds” the requirements under
Next New Jersey. The roughly $1.76
billion project is more than 17 times
the program’s $100 million minimum
threshold. And while the law
establishes a minimum threshold of
100 new jobs, CoreWeave will create
143 high-quality, innovation-driven
positions that exceed the required 120
percent of the county’s median salary.
Sullivan, speaking to EDA board
Gov. Phil Murphy visited CoreWeave’s headquarters in summer 2024 to sign the bill
members during the Nov. 12 meeting,
noted that many states have incentive
Program – AI. The EDA did not have
CoreWeave qualifi es for the maximum
programs to encourage data center
any other applications pending as
allowable tax credit of $50 million
development. Yet he argued that
of the November meeting, he said,
per year, to be issued annually
New Jersey’s is “best in breed (and)
but the program offers a compelling
over the fi rst fi ve years of a 10-year
… quite different from what a lot of
opportunity to others in the space.
commitment period in which it must
other states do.”
stay in New Jersey and maintain the
“This is the only one we have in house
“First of all, it’s encouraging and
associated jobs, the EDA said. The
at this moment,” Sullivan said. “But if
requiring signifi cant permanent job
Next New Jersey Program – AI will
somebody else is going to invest $1.7
creation, so if
accept applications through March
billion and create 143 jobs, they’re
you just have
1, 2029, on a rolling basis subject to
getting a similar-sized award.”
a data center,
available tax credits. RE
you’re not
getting 143
permanent jobs
at the company
level as well,”
Sullivan said.
Tim Sullivan
“Two, it does
have a signifi cant capital investment
requirement, which sets up an
enormous amount of tax revenue at
the state and local level.”
He also cited the collaboration
agreement and the accompanying $25
million investment by CoreWeave,
which will provide a “locational
advantage” for New Jersey startups
and academic institutions, allowing
them to benefi t from their proximity
to a top-tier data center and AI
infrastructure.
“So it’s got lots of bells and whistles
that I think make it an incredibly
strong tool in the tool kit but also
much smarter, frankly, than what
other states are doing to participate
in the AI revolution, which is
omnipresent for all of us,” Sullivan
said. “This is a really good example.”
Responding to questions from
board members, he confi rmed that
CoreWeave’s approval accounts for
half of the $500 million tax credit
allocation under the Next New Jersey
creating the Next New Jersey Program – AI tax credit.
Photo by Jake Hirsch / Courtesy: Governor’s Offi ce