Charlotte is vying for formal recognition on a national level with its bid for the federal Tech Hubs grant program.
In phase one of the Tech Hubs program, part of the CHIPS Act passed by Congress in 2022, only 20 cities will be appointed with the tech hub status. That number will be trimmed down to five to 10 cities in the fall for the second phase, which provides for an infusion of $75 million in federal funding for the local region.
Charlotte-based Meta Lab Tech Hub led the proposal, with support from a consortium of major financial and health-care firms, an R2 research institution and workforce development and government agencies. Those partners include Ally Financial (NYSE: ALLY), Atrium Health, Bank of America Corp. (NYSE: BAC), Carolina Fintech Hub, LendingTree Inc. (NASDAQ: TREE), North Tryon Tech Hub, esports platform PlayVS, Stiegler EdTech, the city of Charlotte, UNC Charlotte, U.S. Bancorp (NYSE: USB), Varo Bank and Wells Fargo & Co. (NYSE: WFC).
The Tech Hubs grant program, launched by the U.S. Department of Commerce’s Economic Development Administration in May, was created to identify potential tech hubs around the country beyond the typical tech epicenters such as Silicon Valley, Boston and New York and offer funding they need to grow.
Meta Lab's proposal was one of four local bids to the EDA for Charlotte to gain tech hub designation.
Applications for the program closed on Aug. 15. The EDA will announce the top 20 cities this fall.
Charlotte’s bid focuses on designating the region as a global competitor in artificial intelligence innovation. The consortium of organizations that supported the proposal could help stretch the grant money and give it more impact for the initiative.
That impact could include recruiting high-performing talent in AI, creating adult and youth workforce training programs for the technology or implementing exclusive research and development capabilities alongside industry testing, said Tariq Bokhari, founder of the Carolina Fintech Hub and Charlotte City Council member.
Cities that are not chosen for the investment could possibly use other plans they have created to solicit state or other funds to become a global epicenter in a next-generation technology like AI, biotech or robotics.
The Meta lab Tech Hub — a financial-technology and health-tech accelerator launched by Carolina Fintech Hub and other partners in 2021 — said it's important that the U.S. implements strategies to compete at the frontline of AI development. That’s as the technology faces challenges with lack of transparency, job displacement and data privacy, among other concerns. Through this bid, Charlotte aims to overcome that challenge and leverage AI to its fullest potential.
Charlotte is already recognized as the second-largest banking hub in the nation. Bokhari said he hopes with proposed projects such as an uptown tech hub, the region could boost its market opportunity in new territories such as AI. “With over 10 months of work on this project, our consortium is positioned to advance our region’s yet unfulfilled market opportunity and build upon these existing strengths,” he said. “... This consortium has decided to come together and build the AI-equivalent of the Zelle joint venture, which is a strong proof point that shows when individual companies come together and collaborate, uncommon results are possible.”
The North Tryon Tech Hub effort began last year by Charlotte Center City Partners, UNC Charlotte and real estate developer Daniel Levine. Retired Bank of America CEO and newly appointed UNC Charlotte Board of Trustees member Hugh McColl recently announced that he wants to help make the technology education and research hub a reality.
Bokhari said if the region is selected to receive the tech hub title, it could be one of the top events in Charlotte’s economic history. He also believes the city is in a strong position to succeed in its bid. “While there will be hundreds of cities vying for designation, I believe the unique vision and strong consortium will position Charlotte as a leading candidate to become one of the 20 coveted tech hubs,” he said.
