Nvidia Adds Major South San Jose Footprint for Advanced Tech Operations

Sources familiar with the deal report that Nvidia has secured a lease on the 302,800-square-foot industrial building at 5853 Rue Ferrari in the Santa Teresa district. City filings from earlier this year outline plans for research and laboratory spaces, work labs, an office area complete with a conference room, and at least one computer lab equipped with server racks. The facility is designed to draw 49 megawatts of power, with earlier proposals also exploring on-site electricity generation.

Prologis, which took ownership of the 17-acre site through its acquisition of Duke Realty, has already begun tenant improvements. The building shell stands complete, and recent on-site observations show active construction both inside the structure and on adjacent grounds. CBRE continues to handle marketing for the property, which offers high clear heights, substantial dock capacity, and power infrastructure expandable well beyond the initial tenant requirements.

This move aligns with Nvidia’s pattern of assembling additional land near its Santa Clara headquarters to support ongoing growth. The Santa Teresa location sits roughly a mile from PG&E’s recently upgraded substation on Santa Teresa Boulevard, where capacity has already doubled to 80 megawatts with further expansion planned over the next three years. That infrastructure work, originally driven by data center demand, now positions the broader area to accommodate the power needs of advanced technology operations.

Such investments underscore the continued pull of South San Jose for companies that require both space and reliable energy to push computing and artificial intelligence capabilities forward. The combination of available industrial stock, highway access, and expanding utility capacity keeps the southern edge of the city firmly in the conversation as Silicon Valley’s physical footprint evolves.

Source: The Mercury News

San Jose Startup TYLsemi Raises $43 Million to Speed Custom AI Chips

A new San Jose semiconductor company has stepped out of stealth with $43 million in seed funding aimed at helping firms design custom processors for AI infrastructure. TYLsemi, launched in March, focuses on technology that shortens development time, lowers costs, and improves power efficiency for companies that need specialized silicon but lack full semiconductor teams.

Matter Venture Partners led the round, with additional backing from Viola Ventures, GHOVC, Egis Technology, and a strategic semiconductor investor. CEO Mohit Gupta and the founding team previously held roles at Alphawave, Microsoft Azure Silicon, and Rambus. The company already holds a letter of intent with a tier-one customer and expects further design wins this year, with first silicon samples planned for the second half of 2027.

Energy constraints have become a central limit on how much compute hyperscalers can deploy. TYLsemi’s approach targets lower power use inside AI systems as one piece of the larger solution that also involves cooling and data-center design. The firm currently employs more than 30 people and plans to reach more than 80 by year-end and more than 200 by the end of 2027, with roughly half based in the United States and most of those in the Bay Area.

Negotiations are under way for about 6,000 square feet of space near First Street and Zanker Road in north San Jose, and a Taiwan office is scheduled to open later this year to support manufacturing and supply-chain work. The arrival of another specialized chip firm adds to San Jose’s continuing role as a center for the hardware that powers the next wave of artificial intelligence.

Source: SVBJ

San Jose Secures First Place as the Nation's AI Capital

San Jose claimed the number one position in a detailed national evaluation of how well metropolitan areas support artificial intelligence development. The metro received top marks across the core measures that track patent creation, technical education outcomes, technology job concentration and research facility presence.

The underlying numbers illustrated decisive leadership on multiple fronts. The region produced 8,383 AI-related patents between 2020 and 2024, more than any other metro in the study, while delivering 420.1 patents per 100,000 residents. University graduates earned STEM degrees at a 62.5 percent rate. Technology roles reached a density of 132.1 positions for every 1,000 jobs, and 346 corporate research and development centers operated in the area, with twenty of those added in the past decade.

These outcomes reflect an ecosystem built over many years that combines advanced hardware capabilities with sophisticated software platforms. Talent arrives through strong local university programs and stays to contribute at organizations that move ideas from research into practical applications at scale. The combination creates a cycle of invention and commercialization that stands out even among other strong technology regions.

The study positioned San Jose ahead of other notable centers, including its Bay Area neighbor San Francisco along with Seattle and Boulder. This placement highlights the specific advantages in density and specialization that define the local environment. It also reinforces the broader trajectory of establishing San Jose as a place where technological progress generates lasting community-wide benefits.

Local organizations and residents can apply this recognition to shape decisions on workforce training, research support and business attraction. Continued investment in these areas extends the advantages already visible and helps translate AI leadership into expanded opportunity and economic strength across the city.

Source: Hubble Study

San Jose Opens New AI Training Center at Downtown MLK Jr. Library

San Jose launched the AI Center for Civic and Social Good to strengthen its position as a technology leader. The new facility occupies the first floor of the Dr. Martin Luther King Jr. Library at San Jose State University near the south entrance by Tower Lawn in Downtown San Jose. This public hub will provide free classes and workshops tailored for students, job seekers, and city employees eager to build vital capabilities.

Adobe contributed a key grant to develop the space and fund ongoing activities. The city and San Jose State University partnered on the project with a total budget around $800,000. OpenAI, Anthropic, and Google enhanced the offerings through the established AI for All initiative by providing access to specialized online courses, training pathways, and certifications.

OpenAI will roll out in-person workforce training sessions at the center starting in April. This public expansion builds successfully on prior programs that equipped city employees with practical AI tools for their roles. Leaders structured the center to help locals actively participate in the AI growth transforming the region.

This is one more step San Jose is taking to steadily advance toward its goal of becoming the most AI-literate city on the planet. The initiative pairs education efforts with broader initiatives to bring data centers and AI investments into Downtown San Jose.

Source: SVBJ

Cadence Boosts San Jose State University's AI Innovation Hub with Key Partnership

San Jose State University has secured a multiyear collaboration with Cadence Design Systems to enhance its upcoming artificial intelligence innovation hub, set to open by summer 2026. This alliance joins efforts from companies like Nvidia and Adobe, positioning the University as a central player in Silicon Valley's tech landscape. Cadence, already present on campus through its IC Design Laboratory, will provide AI design software and digital twin technology, described as virtual replicas that help identify inefficiencies in real-world systems.

The hub aims to serve students across various fields, from engineering and computer science to healthcare and social sciences, allowing them to explore AI applications for practical challenges. For instance, the university's work with the city of San Jose and Nvidia on a digital twin of the city models infrastructure layers, including underground utilities, streets, and buildings, to simulate scenarios like wildfires for better emergency planning. This partnership expands those capabilities, leveraging Cadence's expertise in digital twins to foster innovative problem-solving.

San Jose's broader push to lead in AI includes initiatives like the Plug & Play business incubator, where entrepreneurs develop startups with venture support. As the region's largest public university, SJSU takes on the role of equipping graduates with skills for human-centered AI use, aligning with the city's tech-driven growth. This development not only prepares the workforce but also draws talent to San Jose, strengthening its reputation as an innovation epicenter.

With investments like this, San Jose continues to build an ecosystem where education and industry intersect seamlessly. Students gain hands-on access to cutting-edge tools, while companies like Cadence contribute to community impact while training potential future employees.

Source: SVBJ

San Jose Fuels AI Innovation with Downtown Startup Grants

San Jose is launching a grant program to draw AI startups to Downtown, positioning the city as a leader in artificial intelligence amid friendly rivalry with San Francisco and others. Mayor Matt Mahan highlights the city's hardware expertise in areas like energy, robotics, and transportation, including autonomous vehicles and electric vertical takeoff craft. This focus complements software advancements, emphasizing physical applications that shape everyday life and leverage San Jose's strengths in the world of atoms.

The first four recipients demonstrate diverse AI solutions addressing real-world challenges. Elythea develops voice agents to monitor patient outcomes, partnering with Medicaid to detect high-risk pregnancies early and reduce maternal mortality. Metafoodx creates an embodied AI platform for smart kitchens, aiding restaurants in cutting food waste through efficient systems. Clika assists hardware firms in optimizing AI models for edge efficiency. Satlyt offers edge-computing services for satellites, integrating them into a decentralized virtual cloud to enhance data processing.

Each winner receives a $50,000 one-time grant, plus eligibility for two years of waived business taxes and two free parking spots per 1,000 square feet of Downtown office space. These incentives encourage relocation or expansion, fostering a robust AI ecosystem in the heart of the city. San Jose also applies AI internally to improve bus routes, detect road objects, and translate meetings, showcasing practical integration.

As a top metro for startup salaries, tying with San Francisco and New York, San Jose attracts talent despite slower early-stage hiring trends. This program builds on the city's legacy as Silicon Valley's core, inviting entrepreneurs to contribute to groundbreaking advancements.

Source: SVBJ

Tech Hub Rises from a Forgotten Site

At 199 Bassett Street, a location once earmarked for a sprawling affordable housing project, a fresh vision is taking shape. The original plan for 803 co-living residences fell apart in 2021 after a loan default led to foreclosure in 2022. Now, that same site is poised to become a cutting-edge tech hub—an eight-story "AI Research and Development Facility" that could redefine the area.

The new building will feature a lively ground floor with two lobbies and 2,800 square feet of retail space, while the upper levels are designed to support the heavy data demands of artificial intelligence and tech innovation. Led by Bay Area real estate executive Dennis Randall, this initiative taps into the city’s strengths and promises to draw more companies, talent, and energy to Silicon Valley’s core.

The shift from housing to high-tech reflects San Jose’s dynamic priorities. While affordable homes remain a critical need, this tech hub leans into the city’s role as a global leader in innovation, especially in AI.

Source: SiliconValley.com

San Jose: The Hotspot for New Grad Hiring and AI Innovation

San Jose is carving out its place as a leader among U.S. cities, topping the charts for new graduate hiring growth. Data from Gusto, a payroll and management software company, shows a remarkable 13.1% rise in the city’s new grad hiring rate from April 2024 to March 2025. 

What’s fueling this surge? A sharp focus on AI is driving both hiring and salary increases across the Bay Area, with San Jose at the forefront. New grads here are seeing starting salaries climb by 7.6% year-over-year, reaching an average of $91,453 as of March 2025. Compare that to the national average of $61,996, and it’s easy to see why San Jose stands out. While hiring for new graduates has dipped nationally—down 16% from 2024 and expected to drop 44% from 2022 levels by mid-2025—San Jose is defying the trend, alongside neighbor San Francisco, thanks to its deep roots in tech innovation.

San Jose State University (SJSU) is a big part of this story. Located in the heart of Silicon Valley, SJSU is equipping students with the skills to thrive in an AI-driven future. From specialized AI courses to hands-on projects and internships, students are immersed in cutting-edge tech—some even contributing to city initiatives. Partnerships with industry giants like Nvidia and Adobe further amplify these opportunities, creating a direct pipeline from classroom to career. This synergy between education and industry is a key reason San Jose continues to lead.

Beyond the numbers, San Jose offers something unique: a front-row seat to the tech revolution. The city’s position in Silicon Valley means innovation is everywhere, especially in AI. Local businesses using generative AI report higher satisfaction with their hires, which speeds up recruitment and boosts the workforce. For new grads, this translates to not just jobs, but careers with real impact and paychecks to match.

Source: SVBJ

The Hero of San Jose

AI is being used in all sorts of creative ways today, but this is one of the funniest things I have every seen. It's a sequence of San Jose-related prompts followed by AI-generated images. The first prompt is "Show me and image of someone from San Jose." That's followed by "Make him more San Jose" and that is the image below. The prompts eventually lead to "Make him the most San Jose person who ever existed" and then it gets crazy from there. I won't spoil it. Make sure you listen with the audio way up!

Click here to find out who is the hero of San Jose.

The San Jose AI Center of Excellence gets $2M in funding

The Knight Foundation awarded Plug and Play with $2M to help make a collaborative AI network in San Jose. The grant will help Plug and Play launch the San Jose AI Center of Excellence, which will attract AI talent to the region and hopefully create economic opportunities.

The San Jose AI Center of Excellence will be located in the heart of Downtown San Jose in the Bank of Italy Building. The space is undergoing renovations and the target date for a launch event is April 2nd.

Source: SVBJ

STEM job growth in San Jose outpaces other cities

San Jose already has more STEM jobs (Science, Technology, Engineering, and Math) than most other cities in the world, both in terms of quantity and percentage of jobs. For the United States, San Jose has the highest concentration of STEM jobs by far. Now in the STEMdex, San Jose has further grown the number of STEM jobs by 2% between 2019 and 2023.

Salaries for STEM jobs average $112,800, nearly double non-STEM jobs. Part of the growth driver is AI (and yes the image below was created by AI, thanks Grok!), which is significantly increasing labor productivity and demand for employees with AI experience. Within the subset of STEM, generative AI jobs rose 750% between April 2022 and April 2024.

Source: SVBJ

Nvidia will partner with San Jose on AI as well as expand office presence in our city

As a nice little Christmas present, one of the largest and fastest growing AI companies in the world has signed a MOU to partner with the city of San Jose and SJSU. 

Nvidia will work with San Jose State University to create school programs to prepare San Jose students to enter the workforce with AI skills. Nvidia already has AI training programs at every skill level, and they would provide these to educators along with a certification path.

The city of San Jose is also looking to Nvidia for help in streamlining regulatory approvals for AI initiatives. They will offer city facilities to support AI research and development. In return, Nvidia will provide some of it's training resources related to AI to San Jose.

By leaning into the future, this is an excellent strategy to ensure San Jose will stay at the forefront of tech in years to come.

However, there is more. The icing on the cake is that Nvidia has also leased 100,000 SQFT in North San Jose (300 Holger Way). This will bring more high-paying tech jobs and tax dollars to our city. Nvidia is on a roll right now with a market cap of $3.3 trillion (with a "T") and are finding themselves in desperate need for more office space. This is an area where San Jose can gladly help out.

Source: SVBJ, The Mercury News

ADAS & Autonomous Vehicle Conference in San Jose

San Jose is aiming to become a major player in the AI space and part of that is hosting major AI-related events. Earlier this year, Nvidia hosted their largest annual conference in San Jose and they have already booked the McEnery Convention Center again for 2025.

This week the ADAS & Autonomous Vehicle conference is coming to San Jose and will host a variety of speakers from companies like Waymo. Self-driving cars aren't coming, they are already here thanks to the latest innovations in AI.

The event is taking place this Wednesday and Thursday at the Convention Center. If you're interested in learning more, you can register for this conference for free over here.

San Jose's AI incubator plan

One of San Jose's most prolific supporters, Gary Dillabough, is championing an "AI Center of Excellence" in Downtown San Jose. The goal would be to create an accelerator for dozens of AI startups in partnership with Plug and Play Tech Center and the City of San Jose.

Plug and Play is working on the concept and would run the day-to-day operations of the center. They are currently headquartered at 4420 N. Wolfe Road in Sunnyvale and have multiple innovation centers around the world. It's not clear where the Downtown San Jose location would be yet.

In addition to the incubator, there would also be a learning center whole goal is to get 7th through 12th graders inspired about AI and generate the next generation of entrepreneurs. There would also be a showcase featuring outcomes from the program. For a lot more details, check out the source link below.

Source: SVBJ

Grok2-generated image of "AI in San Jose"

City of San Jose using AI to streamline government

San Jose is aiming to be an epicenter of AI innovation and development. It seems like City Hall is planning to practice what they preach and apply AI to identifying and solving problems. 

The current use cases are optimizing public transit, publishing translations, reviewing documents, and finding issues like graffiti, potholes, broken street lights, and illegal dumping. There are many more possibilities as well such as emergency response and routine city business reviews, monitoring air quality, waste management, and other services. Essentially AI is being leveraged to improve city services while at the same time reducing costs.

Given our city's goals, we should leverage AI to the maximum extent possible and set the benchmark for others. There are lot of encouraging quotes from city leaders and experts that this is the track we're on at the source link below.

Source: San Jose Spotlight

Happy Easter 2024!

Below is an AI-generated image of "Easter in Downtown San Jose" using DALL-E 3. I like the floating eggs, not a bad idea.

Nvidia AI Conference taking place in Downtown San Jose right now

The latest advancements in AI hardware--which is quickly headed to becoming a multi-trillion dollar market--are being announced right now in Downtown San Jose. Yesterday Nvidia CEO Jensen Huang delivered his keynote at the SAP Center. Throughout the rest of the week, about 10,000 visitors will attend workshops and panel discussions at the McEnery Convention Center each day.

San Jose has a strong desire to make Downtown the AI capital of the world. Hosting Nvidia's flagship conference here is definitely a big win.

Source: San Jose Downtown Association

San Jose AI startup raises $72M

Zededa Inc. just announced a $72 million in Series C funding. The company is a cloud-based edge management startup that works with manufacturing, retail, health care, and logistics company. Essentially they bring data closer to where it is needed for faster response times using less bandwidth.

The funds will be used to increase the amount of artificial intelligence and machine learning used in its products.

So far they have raised more than $127 million in funding and are worth about $400 million.

Source: SVBJ

Samsung is launching new AI-focused smartphones in San Jose

Samsung is gearing up to launch their newest flagship devices on January 17th at their North American headquarters, right here in San Jose. The theme is "Galaxy AI is coming." 

It's not entirely clear how Samsung will spice up their lineup but is easy to speculate that they will have components similar to ChatGPT or Google Bard. The new phones could also have new hardware to accelerate AI functionality or apply AI to phone use itself (e.g. predicting what you are going to do and setting up automatic routines). Whatever happens, they'll be filming here.

Samsung's North American Headquarters is located in North San Jose at 3655 North First street.

Source: The Mercury News

San Jose Mayor Matt Mahan's 2023 holiday message

Our mayor's end-of-year newsletter featured several highlights in 2023. You can read the full thing in the source link below, but the items that really stood out for me as big wins were:

• Lower homelessness by 10% and we have 788 additional interim housing units in the pipeline
• Lower crime by 5%, Automatic License Plate Readers have helped solve hundreds of crimes in San Jose
• 300% increase in volunteerism, 500,000 lbs. of trash removed from streets and creeks
• San Jose residents and companies were granted the most AI patents in the country, San Jose also hosted an innovation summit to help the city leverage AI solutions
• Improved San Jose permitting times on both big and small projects

Overall, it seemed like 2023 was a very positive year for San Jose. I hope everyone has an amazing New Year's Eve and hopefully we'll have an even better 2024! 🎊🥳

Source: San Jose Inside