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As U.S. states compete to position themselves within the artificial intelligence economy, public policy and capital coordination are becoming as decisive as technological capability.
CES 2026, the world’s largest tech conference in Las Vegas, offered several examples of this trend, highlighting how regional governments and private investors are aligning to attract early-stage AI development.
Against this backdrop, NovaWave Capital revealed plans to establish an AI-focused venture studio in Arizona, developed in partnership with the Arizona Commerce Authority. The initiative reflects a broader push to reinforce public-private funding models that support early-stage technology companies beyond traditional innovation centers.
Arizona has emerged as a focal point in that shift. In 2025, the state attracted more than $34 billion in new investment and nearly 28,000 projected jobs, with activity spanning semiconductors, aerospace, broadband infrastructure, and artificial intelligence.
The new venture studio, called WaveX, will focus on building AI-driven startups in healthcare, energy, sports, and media. Rather than functioning as a conventional accelerator, the studio is structured to embed venture creation, capital access, and commercialization support at early stages.
“With our collaborative business environment, world-class talent, and advanced technology ecosystem, Arizona offers unparalleled opportunities for startups and early-stage companies to scale and succeed,” said Sandra Watson, President and CEO of the Arizona Commerce Authority. “We are excited to partner with NovaWave Capital on the creation of a new AI venture studio and venture fund to support Arizona-based companies.”
State leadership framed the initiative as part of Arizona’s longer-term economic strategy. Governor Katie Hobbs described the venture studio as an addition to the state’s growing innovation base.
“Arizona is proud to welcome NovaWave Capital’s venture studio to our state, a powerful addition to our thriving innovation ecosystem,” Hobbs said, citing artificial intelligence, energy, and advanced manufacturing as areas of focus.
WaveX is not intended to operate in isolation. NovaWave Capital plans to integrate the Arizona studio into a broader network that includes LG NOVA hubs in Silicon Valley and West Virginia, along with the firm’s presence in the Gulf region.
During CES 2026, NovaWave Capital also announced the addition of AZ Venture Capital Inc. and Sunny Day Sports as incoming investors to its current fund generation. The firm said the move aims to strengthen a public-private capital base supporting innovation across multiple regions.
NovaWave Capital operates as the investment arm associated with LG Electronics’ North America Innovation Center, LG NOVA. The platform focuses on scaling AI-enabled companies in energy, healthcare, and enterprise services.
“Our collaboration with AZ Venture Capital Inc., Sunny Day Sports and the Arizona Commerce Authority is a testament to the vision shared by our investors and regional partners across the public and private spectrum to build and scale AI-first companies in collaboration with LG NOVA,” said Ali Diallo, Founding Managing Partner of NovaWave Capital.
He added that the strategy connects established innovation centers with emerging regional markets.
“By bridging Silicon Valley innovation with the fast-growing ecosystems of regional and international markets, we are seeking to build the next generation of AI, energy and health companies that will accelerate America’s innovation economy,” Diallo said.
Portfolio companies supported by NovaWave Capital gain access to venture-building resources through WaveX, sector expertise in artificial intelligence, digital health, and advanced energy systems, and commercialization pathways supported by LG NOVA.
As CES 2026 continues, initiatives like the Arizona venture studio highlight how artificial intelligence development is increasingly shaped by regional policy alignment and capital distribution, rather than by technology hubs alone.
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