India Boosts AI Ambitions with ₹10,000 Crore Fund and Goal of 50,000 GPUs

Artificial Intelligence is shaping the future of technology and innovation worldwide, and India is making decisive moves to establish itself as a major player. Recognising AI’s potential, the government is focusing on providing the necessary computing infrastructure and creating a supportive ecosystem for start-ups and researchers. This strategic push combines significant investment in hardware resources with efforts to nurture domestic talent and innovation.

AI Infrastructure Expansion: Securing the Backbone of Innovation

The availability of Graphics Processing Units (GPUs) is vital for AI research and development. Initially, the IndiaAI Mission aimed to provide 10,000 GPUs to researchers, start-ups, and institutions across the country. However, the scale of the initiative has grown rapidly. Abhishek Singh, Additional Secretary at the Ministry of Electronics and Information Technology (MeitY), shared at the Accel AI Summit 2025 that “in the first two rounds of tenders, we secured commitments for 34,000 GPUs. Of these, around 18,000 are already deployed, with the remainder expected to be in place over the next two to three months.”

With another round of bidding closing soon, Singh anticipates securing an additional 15,000 to 16,000 GPUs, bringing the total to approximately 50,000 within 6 months. The private sector is also contributing significantly, with companies like Reliance Industries planning the world’s largest data centre, and firms such as Infosys investing in GPU infrastructure independently. To ensure fair and timely access, India has launched a centralised portal that allows start-ups and researchers to request GPU resources transparently, reducing bureaucratic delays.

Investor Confidence and Start-up Growth Fuel AI Momentum

Alongside infrastructure development, venture capital interest in India’s AI ecosystem has surged. This trend reflects growing confidence among investors and a narrowing gap between technological developments in Silicon Valley and their adoption in India.

Indian start-ups are increasingly global in outlook, often founded by teams with members in both India and the US, many connected to the Indian diaspora. The government is also fostering indigenous AI innovation by supporting start-ups developing foundational AI models customised for India’s linguistic and cultural diversity. Notable examples include Gan.ai, founded by a Stanford graduate who returned to India. A ₹10,000 crore fund-of-funds initiative, including ₹2,000 crore under the IndiaAI Mission, further supports innovation in AI and deep tech, with a focus on voice interfaces and cost optimisation.

Read More: Best Artificial Intelligence Stocks in India for June 2025!

Conclusion

India’s AI ecosystem is rapidly maturing through a combination of large-scale GPU infrastructure deployment, increasing investor enthusiasm, and targeted government initiatives. As the country continues to bridge gaps in technology and talent, it is poised to become a significant force in the global AI landscape.

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