In an effort to attract the next generation of AI startups to the South Bay, San Jose Mayor Matt Mahan wants San Jose to explore creating incentives for AI companies to move or expand in the city. He also wants to research opportunities to make city services more efficient and accessible through AI.
The city's Rules and Open Government Committee approved the ideas proposed in a memo by Mahan, Vice Mayor Rosemary Kamei and Councilmember David Cohen on Wednesday. Plans still need to go to the full San Jose City Council for final approval.
Mahan told San Jose Spotlight: "San Jose is what 'made in America' looks like in the 21st century. We have the largest, most diverse pool of technical talent in the country. That's really our edge."
City officials have multiple ideas to lure AI companies to San Jose, including discounted utility rates, potential tax and fee rebates and subsidizing or totally covering leases or rents for office space. Mahan is also searching for ways to use AI for better timed traffic lights and a quicker permitting process for developments across the city.
Mahan argued that San Jose is a prime location for AI companies to move to because of its proximity to world renowned hardware, software and semiconductor companies. Downtown is also home to San Jose State University, which has a growing AI department and recently launched a master's degree in AI.
Assistant City Manager Lee Wilcox said the city will explore the legitimacy of the proposed incentives and come back with budget proposals to fund further exploration early next year.
