Mayor Matt Mahan Invites AI to San Jose With New Memo Incentivizing Innovation in the Heart of Silicon Valley
Mayor Mahan and Councilmember Cohen propose new methods that aim to further cultivate a thriving AI ecosystem in the city of San Jose
FOR IMMEDIATE RELEASE
October 10, 2023
Media Contact:
Tasha Dean, Chief Communications Officer, Office of Mayor Matt Mahan, [email protected]
SAN JOSÉ, CA - Today, San Jose Mayor Matt Mahan and Councilmember David Cohen, alongside experts and business leaders, invited AI to San Jose with a new memo incentivizing innovation. In the memo, the Mayor and Councilmember are asking the city to explore incentives to attract AI companies to San Jose – including looking into discounted utility rates and expedited permitting processes. They also seek to encourage innovators to explore AI solutions to civil problems like traffic safety, accountability, and transportation, among others.
“City Hall has a role to play in maintaining Silicon Valley’s competitive edge,” said San Jose Mayor Matt Mahan. “We’re asking city staff to design incentives to support the growth of AI companies in San Jose as well as opportunities for AI entrepreneurs to develop new solutions to long-standing civic challenges, from climate change to traffic safety.”
This Memo proposes several strategies, the first of which is an Economic Development Pilot Program that will support the launch and re-location of AI companies within San Jose City boundaries. We are anticipating this will create specific incentives such as energy discounts, tax and fee rebates, and potentially expediting the planning and permitting process.
“Supermicro designs and manufactures data center infrastructure for the large-scale AI clusters providing solutions for AI, social media, and autonomous driving organizations in Silicon Valley and globally,” said Michael McNerney, Vice President Marketing and Network Security, Supermicro. “San Jose’s AI Incentive program unveiled here today, is another example of why San Jose is a great place to do business.”
Another flagship portion of this memo is the creation of an incubator which the Mayor’s Office has been spearheading. The hope is to establish an incubator, accelerator, applied laboratory, or co-working space to support the network in our borders. Already, the City of San Jose has signed a letter of intent with a Sunnyvale incubator and are currently in preliminary discussions with other such organizations.
The final component of the memo is regarding the recommendation around the adoption of these tools. It is vital that we not only encourage the external ecosystems but also adopt some of this technology in house. A recent engagement concluded just last week was a hackathon with Sony Semiconductors and the TinyML Foundation where 29 participants from 5 countries all worked improving traffic in San Jose. One of local government’s powers is that of convening and we should be mobilizing companies and innovators to work on our most pressing issues.
The memo will be brought before the Rules and Open Government Committee next Wednesday, October 18th. You can find meeting agendas and information on how to watch the meeting here.
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About the City of San José
With nearly one million residents, San José is the largest city in the Bay Area and one of the nation's most diverse and creative. San José’s transformation into a global innovation center in the heart of Silicon Valley has resulted in the world's greatest concentration of technology talent and development.