San José awards $225K to AI startups Elythea, Metafoodx, Clika and Satlyt

San José has completed the first city-led AI startup grant program in the United States, awarding $225,000 total to four early-stage companies developing AI solutions for civic challenges. The AI Incentive Program represents a pioneering approach to municipal innovation funding, positioning San José as a leader in leveraging artificial intelligence for urban problem-solving while strengthening the city’s tech ecosystem.

What you should know: Four startups emerged victorious from a competitive field of 170 applicants, each tackling different civic challenges through AI innovation.

• Elythea received $50,000 for its AI voice agents that connect with at-risk maternal health patients.
• Metafoodx won $50,000 for its embodied AI platform that reduces food waste and optimizes restaurant operations.
• Clika earned $50,000 for hardware optimization technology that simplifies AI models into low-power formats for edge devices.
• Satlyt received $25,000 for its space tech platform that integrates satellites into a decentralized virtual cloud to create an AI network in space.

Beyond the funding: Winners receive comprehensive professional support designed to accelerate their growth and market entry.

• All four companies gain access to real estate consulting, legal services, and IT consulting hours.
• Recipients will receive consideration for Nvidia’s Inception program, which provides technical resources and go-to-market support.
• Venture capital office hours with J2 Ventures offer direct access to investment expertise and potential funding opportunities.

How they chose winners: A distinguished panel evaluated applications across four key criteria that balanced innovation with practical civic impact.

• Judges from IBM, CBRE (a commercial real estate firm), Coactive, and J2 Ventures assessed innovation potential and technical feasibility.
• Ethical AI standards played a crucial role in the evaluation process, reflecting growing emphasis on responsible AI development.
• Civic benefit served as the primary lens for determining which solutions could meaningfully address urban challenges.

The bigger picture: This initiative aligns with San José’s broader strategy to establish itself as an AI innovation hub while addressing workforce development.

• The program supports the city’s mission to strengthen its AI standing and create local jobs in the technology sector.
• A parallel AI Upskilling Program recently graduated its first cohort of city employees after a 10-week training course.
• San José plans to expand the employee AI training program to more than 1,000 workers—roughly 15% of the municipal workforce—by next year.

What they’re saying: Mayor Matt Mahan emphasized the dual benefits of addressing societal challenges while fostering economic growth.

• “Some of society’s biggest challenges are also great opportunities for innovation and job creation,” said San José Mayor Matt Mahan.
• “San Jose’s first-in-the-nation AI grant program is funding local startups building businesses that make our city stronger, safer and more vibrant for everyone.”