Louisiana Launches $100 Million Innovation Fund, AI Institute to Boost Tech Economy

Louisiana is making a major play in the innovation economy with the launch of Louisiana Innovation (LA.IO), a new division of Louisiana Economic Development (LED) dedicated to fostering high-growth, technology-enabled startups. Announced at Super Bowl LIX Innovation Day in the Louisiana Now Pavilion, LA.IO’s first initiative includes the Louisiana Growth Fund, which will provide a total of $100 million in investment capital for startups and tech-driven businesses.

The fund is backed by an initial $50 million in federal funding, with equity and incubator partners contributing matching dollars. LA.IO will also lead the development of the Louisiana Institute for Artificial Intelligence, a 501c3 nonprofit focused on AI research, commercialization, workforce development, and policy initiatives. The Institute’s first project will provide 5,000 small businesses with AI-powered tools to enhance competitiveness and scale operations.

“Successfully positioning Louisiana to win demands that we not only attract new businesses but grow new businesses from the ground up,” LED Secretary Susan B. Bourgeois said. “Louisiana Innovation is dedicated to working with startups as well as existing companies to grow Louisiana’s innovation economy.”

Bourgeois cited Meta’s $10 billion data center project in Richland Parish as evidence that Louisiana’s focus on innovation is paying off. She emphasized that the state is investing in the next industrial revolution through strategic funding and collaboration.

Building an Innovation Ecosystem

Louisiana Innovation is leveraging an extensive network of partners to support entrepreneurs, including Ochsner Louisiana’s Innovation Fund, Tulane University’s Innovation Institute, the New Orleans Startup Fund, Innovation Catalyst, Boot64 Ventures, The Idea Village, and Propeller. The initiative will also expand in 2025, adding more seed capital funds across the state.

“Facilitating the right connections and offering coaching to innovators and startups are just as vital as the funding,” said LED Chief Innovation Officer Josh Fleig, who joined Bourgeois for the announcement before a crowd of business, higher education, economic development, and government leaders. “Louisiana Innovation will lead on creating new events to spark connections in the startup community.”

Innovation-focused events will be spearheaded by organizations like The Idea Village in New Orleans, Opportunity Machine in Lafayette, and EAP and Startup Prize in Shreveport. The goal is to expand university partnerships to further develop the state’s innovation ecosystem.

“All of these partners have built respected, high-impact startup events in their regions,” Fleig noted. “Now, under Louisiana Innovation, they will collaborate with dedicated staff, shared tools, and real-time cooperation to create an ecosystem that is greater than the sum of its parts.”

Waymo Brings Autonomous Driving to Louisiana

As part of the Innovation Day program, autonomous driving technology company Waymo showcased one of its self-driving cars at the Louisiana Now Pavilion. Waymo also announced that New Orleans will be one of 10 cities included in its 2025 Waymo Road Trip tour. The initiative aims to expose Waymo’s autonomous navigation system to a variety of driving environments, from unique traffic patterns to diverse road conditions.

With the launch of Louisiana Innovation, the state is positioning itself as a rising leader in the innovation economy, harnessing cutting-edge technologies like AI and autonomous mobility to drive economic growth and opportunity.