U.S. aims to turn middle-American cities into new tech hubs with $500 million investment
Gina Raimondo, U.S. secretary of commerce, during a “First Tool-In” ceremony at the Taiwan Semiconductor Manufacturing Co. facility under construction in Phoenix, Arizona, on Tuesday, Dec. 6, 2022.
Caitlin O’Hara | Bloomberg | Getty Images
The U.S. government is seeking to turn metro areas in middle America into the next hot spots of tech innovation with an initial $500 million investment.
The Department of Commerce announced Friday its first notice of funding opportunity, or NOFO, for the Regional Technology and Innovation Hub program, known as Tech Hubs. It kicks off the process for eligible groups around the country to apply to be designated as Tech Hubs. That designation gives them the chance to take advantage of the funds to make their regions attractive places for entrepreneurs and technologists to live and work.
“America leads the world in technological innovation. But the sad reality is that our tech ecosystem is extremely concentrated,” Commerce Secretary Gina Raimondo told reporters on a briefing call Thursday, noting that 80% of U.S. venture capital money is invested in the San Francisco Bay Area, the Northeast and Southern California. “There’s so much more potential for tech innovation all across the country. In the U.S. we have the best research institutions in the world. That’s indisputable. And frankly, many of them are in America’s heartland, far from the coast.”
Congress authorized $10 billion for the program between fiscal years 2023 and 2027, of which $500 million is available to be distributed this year. Under the current funding opportunity, a total of $15 million in planning grants will be made available to applicants designated as Tech Hubs. Later this year, the Department will seek to award five to 10 designated Tech Hubs grants of $50 million to $75 million each to help build out capacity in their region, according to a Department of Commerce official.
President Joe Biden requested $4 billion be made available for Tech Hubs in next year’s budget.
Eligible applicants are groups made up of at least one entity from each of the following categories: a higher education institution, subdivision of local or state government, industry or firm in relevant tech or manufacturing field, economic development group, and labor organization or workforce training group.
Under the statute, Tech Hubs should focus on a specific set of key areas of technology, which include artificial intelligence, robotics, natural disaster prevention, biotechnology, cybersecurity, energy efficiency and more. The department must designate at least 20 Tech Hubs under the law.
The hope is that the infusion of funds will help regions across the country become essential centers of innovation and create more well-paying jobs across a greater swath of the nation.
“President Biden is so clear on one point, which is that everyone in America deserves a fair shot at economic opportunity, no matter where they live, and they shouldn’t have to move in order to get a good job,” Raimondo said. “Nobody should have to leave their family or support system or network to move to New York or San Francisco just to get a good job.”
Raimondo also framed the program as an important investment in U.S. national security. She pointed to the nation’s current efforts through the Chips and Science Act to invest in domestic semiconductor manufacturing, which became an urgent bipartisan priority when the pandemic highlighted how fragile the computer chip supply chain was. That’s because most advanced chips are not produced in the U.S., and the industry’s dependence on chips made in Taiwan makes the supply chain especially vulnerable, given tensions with China.
Raimondo said the U.S. “ceded our leadership on manufacturing and innovation for this critical technology. And now we’re in the difficult position of having to catch up.”
The “Tech Hubs program is about making sure that doesn’t happen again, ensuring we stay ahead of the curve on other essential technologies, from quantum to artificial intelligence to biotech,” she said.
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Chief executive officer of Google Sundar Pichai.
Marek Antoni Iwanczuk | Sopa Images | Lightrocket | Getty Images
Google on Friday made the latest a splash in the AI talent wars, announcing an agreement to bring in Varun Mohan, co-founder and CEO of artificial intelligence coding startup Windsurf.
As part of the deal, Google will also hire other senior Windsurf research and development employees. Google is not investing in Windsurf, but the search giant will take a nonexclusive license to certain Windsurf technology, according to a person familiar with the matter. Windsurf remains free to license its technology to others.
“We’re excited to welcome some top AI coding talent from Windsurf’s team to Google DeepMind to advance our work in agentic coding,” a Google spokesperson wrote in an email. “We’re excited to continue bringing the benefits of Gemini to software developers everywhere.”
The deal between Google and Windsurf comes after the AI coding startup had been in talks with OpenAI for a $3 billion acquisition deal, CNBC reported in April. OpenAI did not immediately respond to a request for comment.
The move ratchets up the talent war in AI particularly among prominent companies. Meta has made lucrative job offers to several employees at OpenAI in recent weeks. Most notably, the Facebook parent added Scale AI founder Alexandr Wang to lead its AI strategy as part of a $14.3 billion investment into his startup.
Douglas Chen, another Windsurf co-founder, will be among those joining Google in the deal, Jeff Wang, the startup’s new interim CEO and its head of business for the past two years, wrote in a post on X.
“Most of Windsurf’s world-class team will continue to build the Windsurf product with the goal of maximizing its impact in the enterprise,” Wang wrote.
Windsurf has become more popular this year as an option for so-called vibe coding, which is the process of using new age AI tools to write code. Developers and non-developers have embraced the concept, leading to more revenue for Windsurf and competitors, such as Cursor, which OpenAI also looked at buying. All the interest has led investors to assign higher valuations to the startups.
This isn’t the first time Google has hired select people out of a startup. It did the same with Character.AI last summer. Amazon and Microsoft have also absorbed AI talent in this fashion, with the Adept and Inflection deals, respectively.
Microsoft is pushing an agent mode in its Visual Studio Code editor for vibe coding. In April, Microsoft CEO Satya Nadella said AI is composing as much of 30% of his company’s code.
The Verge reported the Google-Windsurf deal earlier on Friday.
Technology
Nvidia’s Jensen Huang sells more than $36 million in stock, catches Warren Buffett in net worth
Jensen Huang, CEO of Nvidia, holds a motherboard as he speaks during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, on June 11, 2025.
Gonzalo Fuentes | Reuters
Nvidia CEO Jensen Huang unloaded roughly $36.4 million worth of stock in the leading artificial intelligence chipmaker, according to a U.S. Securities and Exchange Commission filing.
The sale, which totals 225,000 shares, comes as part of Huang’s previously adopted plan in March to unload up to 6 million shares of Nvidia through the end of the year. He sold his first batch of stock from the agreement in June, equaling about $15 million.
Last year, the tech executive sold about $700 million worth of shares as part of a prearranged plan. Nvidia stock climbed about 1% Friday.
Huang’s net worth has skyrocketed as investors bet on Nvidia’s AI dominance and graphics processing units powering large language models.
The 62-year-old’s wealth has grown by more than a quarter, or about $29 billion, since the start of 2025 alone, based on Bloomberg’s Billionaires Index. His net worth last stood at $143 billion in the index, putting him neck-and-neck with Berkshire Hathaway‘s Warren Buffett at $144 billion.
Shortly after the market opened Friday, Fortune‘s analysis of net worth had Huang ahead of Buffett, with the Nvidia CEO at $143.7 billion and the Oracle of Omaha at $142.1 billion.
The company has also achieved its own notable milestones this year, as it prospers off the AI boom.
On Wednesday, the Santa Clara, California-based chipmaker became the first company to top a $4 trillion market capitalization, beating out both Microsoft and Apple. The chipmaker closed above that milestone Thursday as CNBC reported that the technology titan met with President Donald Trump.
Brooke Seawell, venture partner at New Enterprise Associates, sold about $24 million worth of Nvidia shares, according to an SEC filing. Seawell has been on the company’s board since 1997, according to the company.
Huang still holds more than 858 million shares of Nvidia, both directly and indirectly, in different partnerships and trusts.
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