San Jose is restructuring its AI coalition, GovAI, into an independent nonprofit. The city will use a $150,000 grant from the Packard Foundation to fund the transition, with San Jose sharing responsibility with at least six others on the coalition board. The transition into a 501(c)(3) nonprofit is expected to take about nine months to obtain federal nonprofit status. GovAI plans to generate revenue through paid events and trainings and private-sector sponsorships. The coalition, founded by San Jose in 2023, has grown from about 1,000 members to over 3,000 representing at least 900 agencies across multiple countries. Mayor Matt Mahan said San Jose took the initiative to start the coalition to stay ahead of technological changes due to its position as a major tech hub.