Downtown San Jose Selected as Prime location

A new hub for artificial intelligence has officially launched in downtown San Jose, marking a significant step towards establishing the city as a leader in AI technology. The AI Center for Excellence, spearheaded by Plug and Play, has chosen a prominent tower at the intersection of First Street and Santa Clara Street as its inaugural location.

The center will be located on the eighth floor of 2 West Santa Clara St., a high-rise owned by Divco West, a bay Area real estate advancement firm. This initiative is a collaborative effort between the city of San Jose, PG&E, San Jose State University, and Plug and Play, all working together to foster the center’s growth and success.

A Vision for San Jose’s AI Future

San Jose’s leadership envisions a thriving startup ecosystem centered around AI. According to Mayor Matt Mahan, We have an opportunity to create a startup cluster in the downtown core. We already have 20 venture-backed AI startups in downtown San Jose. We want to build on that ecosystem. This new center aims to capitalize on the existing momentum and attract even more AI-focused businesses to the area.

Plug and Play’s founder and CEO, Saeed Amidi, anticipates the office opening in May, occupying 6,200 square feet of space. Amidi expressed enthusiasm about attracting leading AI companies to the center, stating, We would love to bring some of these companies like Turing, Glean, Grok, to this AI Center of Excellence in downtown San Jose. We feel San Jose is ripe to be the home of hundreds of startups in the next few years.

The AI Center for Excellence has the potential to house up to 40 startups, potentially bringing hundreds of tech workers to the downtown area, according to Amidi’s estimates. This influx of talent could significantly boost the local economy and further solidify San Jose’s position in the AI landscape.

Strategic Partnerships Fueling Growth

The collaboration between the city, university, and energy provider is crucial to the AI center’s success. Mayor Mahan articulated the city’s ambition, stating, Our vision is to make San Jose the AI capital. One of the components of that is to bring incubators and accelerators into the downtown, to take advantage of the astonishing talent that is being educated at San Jose State and make it easier for entrepreneurs to start businesses and grow them hear in the downtown core.

San Jose State University is poised to play a vital role by providing a pipeline of skilled students and entrepreneurs. University President Cynthia Teniente-Matson emphasized their commitment,saying,We are very aligned with the vision that mayor mahan has for the city to take advantage of this age of intelligence. The city and our university community will be rapidly supporting AI in all forms of intelligence, as well as emerging technologies that we can’t imagine today.

PG&E’s Role in Powering the AI Revolution

PG&E is also a key partner, ensuring the necesary infrastructure to support the growing demand for electricity. CEO Patricia Poppe affirmed their commitment, stating, San Jose is one of the greatest cities in the world and we are proud to power the city of San Jose.

The utility company plans to upgrade its infrastructure and collaborate on new energy projects to meet the increasing electricity needs of the AI sector. Poppe emphasized the importance of preparedness,stating,We want to make sure that we are empowering the people of the city of San Jose to be ready and prepared to leverage the future. AI is certainly a big part of the future.

To proactively address the anticipated surge in demand, PG&E is conducting detailed assessments. Poppe explained, We have actually done something called a cluster study, which allows us to engineer in parallel with our customers what their energy needs would be to power their technology and innovation. We’re going to make sure our infrastructure is ready to power their big ideas.

Moreover, PG&E believes that supporting the growth of big tech customers can ultimately benefit residential ratepayers. Poppe stated,By delivering additional power to the grid we can actually more fully utilize the grid and lower cost for customers. New load growth can help us lower rates and bills for customers across our entire service area. By expanding the customer base, the costs of operating the grid can be distributed more widely, potentially leading to lower rates for all.

Interactive AI Experience Planned

Plug and Play is also exploring the creation of an AI incubator showroom in the Bank of Italy building across the street,located at 12 South First St. This space would allow the public to engage with AI technology in a tangible way. Amidi described the vision, saying, We’re going to have a showroom for people to kind of touch AI. Each company would have a showcase so people can see how their technology would be implemented.

Real Estate Development and ownership

The tower housing the AI center for Excellence is primarily owned by a partnership between Westbank, a global developer based in Canada, and Urban Community, a San Jose-based firm led by Gary Dillabough and jeff Arrillaga.

Downtown San Jose: The New Epicenter of AI Innovation

in a strategic move to position itself at the forefront of artificial intelligence (AI) progress, San Jose has inaugurated the AI center of Excellence in its vibrant downtown district. This initiative, led by Plug and Play, occupies the eighth floor of 2 West Santa Clara Street, a prime location owned by Divco West, a Bay Area real estate firm. The center is a collaborative effort involving the city of San Jose, PG&E, San jose State university, and Plug and Play, all united in fostering AI innovation.

Envisioning San Jose as the AI Capital

san Jose’s leadership envisions a thriving startup ecosystem centered around AI. According to Mayor Matt Mahan,”We have an possibility to create a startup cluster in the downtown core. We already have 20 venture-backed AI startups in downtown San Jose. We wont to build on that ecosystem.” This new center aims to capitalize on the existing momentum and attract even more AI-focused businesses to the area.

Plug and Play’s founder and CEO, Saeed Amidi, anticipates the office opening in May, occupying 6,200 square feet of space. Amidi expressed enthusiasm about attracting leading AI companies to the center, stating, “We would love to bring some of these companies like Turing, Glean, Grok, to this AI Center of Excellence in downtown San Jose. We feel San Jose is ripe to be the home of hundreds of startups in the next few years.” the AI Center for Excellence has the potential to house up to 40 startups,potentially bringing hundreds of tech workers to the downtown area,according to Amidi’s estimates. This influx of talent could significantly boost the local economy and further solidify san Jose’s position in the AI landscape.

Strategic Partnerships Fueling growth

The collaboration between the city, university, and energy provider is crucial to the AI center’s success. Mayor Mahan articulated the city’s ambition, stating, “Our vision is to make San Jose the AI capital. One of the components of that is to bring incubators and accelerators into the downtown, to take advantage of the remarkable talent that is being educated at San Jose State and make it easier for entrepreneurs to start businesses and grow them here in the downtown core.”

san Jose State University is poised to play a vital role by providing a pipeline of skilled students and entrepreneurs.University President Cynthia Teniente-Matson emphasized their commitment, saying, “We are very aligned with the vision that Mayor Mahan has for the city to take advantage of this age of intelligence. The city and our university community will be rapidly supporting AI in all forms of intelligence, as well as emerging technologies that we can’t imagine today.”

PG&E’s Role in Powering the AI Revolution

PG&E is also a key partner, ensuring the necessary infrastructure to support the growing demand for electricity. CEO Patricia Poppe affirmed their commitment, stating, “san Jose is one of the greatest cities in the world and we are proud to power the city of San jose.” The utility company plans to upgrade its infrastructure and collaborate on new energy projects to meet the increasing electricity needs of the AI sector. Poppe emphasized the importance of preparedness, stating, “We want to make sure that we are empowering the people of the city of San Jose to be ready and prepared to leverage the future. AI is certainly a big part of the future.”

To proactively address the anticipated surge in demand, PG&E is conducting detailed assessments. Poppe explained, “We have actually done something called a cluster study, which allows us to engineer in parallel with our customers what their energy needs would be to power their technology and innovation. We’re going to make sure our infrastructure is ready to power their big ideas.” Moreover, PG&E believes that supporting the growth of big tech customers can ultimately benefit residential ratepayers. Poppe stated, “By delivering additional power to the grid we can actually more fully utilize the grid and lower cost for customers. New load growth can help us lower rates and bills for customers across our entire service area.” By expanding the customer base, the costs of operating the grid can be distributed more widely, potentially leading to lower rates for all.

Interactive AI Experience Planned

Plug and Play is also exploring the creation of an AI incubator showroom in the Bank of Italy building across the street, located at 12 South First St. This space would allow the public to engage with AI technology in a tangible way. Amidi described the vision,saying,”We’re going to have a showroom for people to kind of touch AI. Each company would have a showcase so people can see how their technology would be implemented.”

real Estate Development and Ownership

The tower housing the AI Center for Excellence is primarily owned by a partnership between Westbank,a global developer based in Canada,and Urban Community,a san Jose-based firm led by Gary Dillabough and Jeff Arrillaga.

San Jose’s AI Ecosystem: A Snapshot

San Jose’s commitment to AI innovation is evident in its robust ecosystem. The city is home to 91 venture-backed AI startups, collectively valued at approximately $6 billion. San Jose state University (SJSU) produces the most tech graduates in the Bay Area, including renowned alumni like Intel’s Gordon Moore and Dolby’s Ray Dolby. In 2023,San Jose was the #1 city for patents issued out of any city in the United States,