Gov. Kathy Hochul is betting big on artificial intelligence in Manhattan, pledging up to $9.96 million in tax credits to Clay, a New York founded AI go to market platform that is expanding its headquarters in the borough. The company plans to lease 163,095 square feet at 11 Madison Avenue in the Flatiron District and has committed to creating 498 full time jobs and investing $50 million in research and development over the next five years.
What the Package Includes
According to Empire State Development, the state is offering Clay up to $9,960,000 in performance based Excelsior Jobs Program tax credits, tied directly to those hiring and R&D commitments. The agency says the buildout will firmly anchor Clay’s New York headquarters at 11 Madison Avenue, turning the Flatiron address into a long term home base.
Hochul Pitches It as an AI Power Play
In the announcement, Hochul said that “the global race for artificial intelligence leadership is happening right now” and that “New York is winning.” Empire State Development added that the deal “advances Governor Hochul's efforts to grow New York’s innovation economy” and deepen the state’s AI ecosystem, framing Clay’s expansion as part of a broader tech strategy rather than a one off win.
Clay’s Growth and Backing
Clay has been scaling quickly over the past few years. The company closed a $100 million Series C round at roughly a $3.1 billion valuation in August 2025, according to TechCrunch, and serves a roster of enterprise customers in the AI space. TechCrunch also reported that Clay was on track for a significant revenue bump following last year’s fundraising, giving some financial muscle to match its new real estate footprint.
What This Means for the City
A 163,095 square foot lease in Flatiron is no small marker in a choppy office market, and it functions as a high profile vote of confidence in Manhattan workspace. The tax credits are structured so that benefits only flow after Clay hits its performance goals. Fiscal watchdogs point out that the Excelsior program is designed to be performance based and that credits are issued only after Empire State Development verifies hiring and investment milestones, per the Citizens Budget Commission.
CBS New York and other local outlets highlighted the announcement, but the real story will unfold over the next several years. ESD will track Clay’s hiring and R&D benchmarks as the company builds out the Flatiron space and ramps up recruitment. The timing and size of the tax credits will ultimately depend on when those jobs are filled, permits are cleared, and construction hits key milestones.
