NYC puts $29.2 million into NYU quantum lab in exchange for a cut of future inventions

New York City is putting $29.2 million into a new quantum technology lab at New York University — and, in a first for the city, asking for a share of whatever gets invented there.

Mayor Zohran Mamdani, Deputy Mayor for Economic Justice Julie Su and NYCEDC President Anthony Shorris announced the deal Wednesday. The money, awarded through the New York City Economic Development Corporation, will help build QFab, a Quantum Fabrication Facility at 770 Broadway in Manhattan that is expected to open in 2030, according to NYCEDC.

What the city gets

When intellectual property is created at QFab using tools the city paid for, the city will receive 15% of NYU Central Administration's proceeds from it — including equity, royalties, milestone payments and patent licenses, NYCEDC said. The city also gets three seats on QFab's Executive Advisory Board. amNY reported those seats will be held by NYCEDC and two CUNY schools, Borough of Manhattan Community College and New York City College of Technology.

City officials described the revenue share as a first for New York City, which has taken equity stakes in smaller projects before but not a cut of intellectual-property revenue, amNY reported. Any payoff is uncertain: it depends on inventions developed with city-funded equipment actually being commercialized. The mayor did not estimate how much the city could earn, 6sqft reported.

Asked whether such terms could become a requirement for future city-funded projects, Mamdani did not commit to making them mandatory, according to amNY, but called it "a model that we have been very excited about" since taking office.

The lab

QFab will cover 23,000 square feet and give researchers, students, startups and established companies access to specialized equipment for making and testing quantum chips and components, including cleanrooms and cryogenics, NYCEDC said. NYU is putting in an additional $255 million covering construction and 10 years of operations, for total backing of about $284 million. NYU President Linda Mills told amNY that the university's share includes $100 million in capital spending and $155 million in operating costs over the decade.

NYCEDC projects the facility will support more than 100 companies, incubate nearly 50 companies and provide services to 50 new startups. NYU officials project it will help generate about 2,000 permanent jobs, amNY reported. NYU leased 1 million square feet at 770 Broadway last year, according to 6sqft.

Students and training

NYU will give CUNY and New York City Public Schools students access to labs, training, certificate programs, internships and summer workshops. NYCEDC says QFab should reach more than 35,000 New Yorkers in its first 10 years, including over 5,000 students. Juan de Pablo, executive dean of NYU's Tandon School of Engineering, said more than 3,000 CUNY students are expected to benefit, starting with BMCC and City Tech, amNY reported.

6sqft noted the arrangement echoes the federal government's recent practice of taking equity in private companies in strategic industries. NYCEDC cites projections that quantum technology could generate up to $2.7 trillion in economic value by 2035.