New York City and New York University are partnering to develop a cutting-edge quantum fabrication facility (QFab). The “entanglement” of NYC and NYU is being called a first-of-its-kind as it cuts NYC in for a share of the profits.

NYC Mayor Zohran Mamdani said the city will award $29.2 million to NYU to establish the QFab and the city will be represented by three board seats. NYU is making a $255 million investment that will span construction of the facility and 10 years of operation. QFab is expected to open in 2030.

QFab aims to provide researchers, students, startups and established companies access to the specialized equipment required for quantum research in a 23,000-square-foot facility at 770 Broadway. QFab will house specialized cleanrooms, cryogenic testbeds and advanced manufacturing equipment to fabricate, test and prototype quantum chips and components.

QFab is expected to support more than 100 companies in its first 10 years of operation. In addition, QFab will also be open to public City University of New York students as well as public high school students. The goal is to create a regional workforce engine that would provide technician certificate programs, VR training and both undergraduate and graduate research pipelines.

“Right now, at subatomic levels that we can only glimpse, new technologies are being developed that will transform how we fight disease, store energy, and exchange information,” said Mayor Mamdani. “We want those technologies, investments and jobs to be created here in New York City.”

NYC will receive 15 percent of the proceeds resulting from the intellectual property, including equity, royalties, milestone payment and patent licenses. The deal is the first to emerge from Mamdani’s reimagined Economic Development Corporation in which the public sector gets a stake in a private sector initiative.

“With this agreement, we are setting a new standard for economic development in our city,” said deputy mayor Julie Su. “This is exactly what we mean when we say economic justice and economic growth go hand in hand. When the city invests in emerging industries, it also gives us the power to shape what the technology is developed for.”

Quantum technology is projected to generate up to $2.7 trillion in economic value by 2035, according to the mayor’s office. While quantum is still a risky investment in the eyes of many, NYC’s 15 percent stake is expected to help with the city’s overall budget going forward.