Today the city of San Jose announced the four winners of it’s AI Incentive Program: a grant initiative they call the first of its kind. City officials say they looked for companies working on big issues like maternal health, food waste reduction, and the next generation of satellite data processing.
SAN JOSE, Calif. – The City of San Jose has announced the winners of its AI Incentive Program, a grant initiative they call the first of its kind.
City officials selected four companies that address major issues, including maternal health, food waste reduction, and satellite data processing.
Among the winners is Metafoodx, a company using AI to combat food waste. The hope is that restaurants and food service operators can optimize and save.
“With the data, right now they can reduce their overproduction by 50 percent within weeks. That’s what we have actually seen in the field,” said Fengmin Gong, CEO of Metafoodx.
Metafoodx chose San Jose as its headquarters due to the city’s burgeoning AI ecosystem, abundant talent, and supportive government.
“When the private sector and the government can be aligned on the vision, where things should go, how we should approach it, then things go much faster,” said Gong.
The winners receive $50K grant
What we know:
San Jose Mayor Matt Mahan, a strong advocate for AI, announced the grant recipients:
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.Metafoodx: An embodied AI platform for smart kitchens that helps restaurants and foodservice operators cut waste and optimize operations. Founded by Fengmin Gong, co-founder of Palo Alto Networks.Clika: A hardware optimization company that compresses and compiles AI models into low-power, hardware-ready formats, improving accessibility and efficiency across edge devices.
Each of these companies received a $50,000 grant. Additionally, Satlyt, an AI-driven space technology startup that integrates satellites into a decentralized virtual cloud to enhance satellite data processing, has received a $25,000 grant.
San Jose aims to be AI capital of the world
Dig deeper:
Beyond the grants, Mayor Mahan launched an AI Center for Excellence, an upskilling program for city workers, and a series of pilot projects to optimize city services like bus routes.
“We are all the better for it and San Jose is that much closer to being the definitive capital for AI in the world. This is a talent play. Ultimately, the most innovative places have the greatest density of talent,” Mahan said.
The AI grant attracted 170 applicants, and William Gaviria Rojas, Field CTO and Co-Founder at Coactive AI, helped in selecting the winners.
“The grants will have a really positive impact, but in general, it does give the right signal that San Jose is a city that’s really thinking about the future,” he said.
Grant recipients also received tax breaks and professional services, but Metafoodx is most excited about the network they’ve gained.
“I think that’s why getting this grant, I view it as a beginning point. I want then to be able to work more closely with the community,” Gong said.
City officials report that San Jose is now home to 91 venture-backed AI startups valued at approximately $6 billion.
The Source: Interviews with participants, and Mayor Matt Mahan