The Tennessee Tech Innovation Fund has signed a memorandum of understanding with Amazon.com, the internet giant, that will see the company pay $100 million to establish a campus in the state.
Amazon will take a 15% stake in the fund.
Tech companies in Tennessee, which has a population of 1.8 million people, will be able to apply for grants and other assistance.
Tech startups in the region have been targeted for funding in recent years due to economic hardship.
The Tennessee initiative was announced in January.
The state has a $1.2 billion budget deficit, and the state is expected to have a $2.4 billion budget shortfall in the 2017-18 fiscal year.
The program is the first of its kind in the United States, and it will help Tech companies expand their presence in Tennessee and other states.
The funding will also help fund new research and development.
The deal is a first for the Tennessee Tech fund, which previously has funded more than 100 startups, including Amazon, Spotify, and a startup accelerator called Startup Tennessee.
“Tech is going to be the backbone of the Tennessee economy and Tennessee will be the biggest beneficiary,” said Tennessee Tech President Dan Schoen.
“We’ve got to take advantage of the opportunity and the talent that is here to help build the future here in Tennessee.”