San José awards first city-led AI grants to startups

The City of San José has named the four winners of its AI Incentive Programme, where startups tackling critical issues get public funding and support from top tech and civic leaders.

Designed to support early-stage artificial intelligence (AI) companies tackling real-world problems, the initiative provides both cash grants and professional services to help startups thrive.

Satellite data processing

This year’s winners are developing solutions in key areas such as maternal health, food waste reduction, and the next generation of satellite data processing – all while establishing roots in San José and boosting the city’s downtown economy.

Grant winners will join a San José tech scene that now includes 91 venture-backed AI startups valued at approximately $6bn, as well as some of the world’s most successful tech companies, according to recent CBRE analysis. The initiative reflects the city’s strategy to strengthen its innovation economy while encouraging job creation and public problem-solving through responsible AI.

“Some of society’s biggest challenges are also great opportunities for innovation and job creation,” said San José mayor Matt Mahan. “San José’s first-in-the-nation AI grant programme is funding local startups building businesses that make our city stronger, safer and more vibrant for everyone. Making local government a platform for innovation is just one of the reasons we’re America’s AI Capital.”

“San José’s first-in-the-nation AI grant programme is funding local startups building businesses that make our city stronger, safer and more vibrant for everyone”

The following companies received a $50,000 grant:

• Clika: a hardware optimisation company that compresses and compiles AI models into low-power, hardware-ready formats, improving accessibility and efficiency across edge devices
• Metafoodx: an embodied AI platform for smart kitchens that helps restaurants and foodservice operators cut waste and optimise operations. Founded by Fengmin Gong, co-founder of Palo Alto Networks
• Elythea: an AI-driven maternal health company partnering with Medicaid to identify high-risk pregnancies early. The platform uses voice AI agents to proactively connect with at-risk patients, helping to reduce maternal mortality and improve health outcomes.