India Bets $200 Billion on Becoming an AI Superpower

When Narendra Modi takes the stage alongside French President Emmanuel Macron later this week, he won’t just be hosting another international summit. The Indian prime minister will be making a statement of intent—one backed by staggering numbers and the presence of virtually every major player in artificial intelligence. The India AI Impact Summit, a four-day gathering that has drawn executives from OpenAI, Anthropic, Google, Microsoft, Nvidia, and DeepMind, represents the developing world’s most ambitious attempt to position itself at the center of the AI revolution.

“India wants to attract over $200 billion in investment for AI infrastructure in the next two years.” — Ashwini Vaishnaw, India’s Technology Minister

A $1.1 Billion State-Backed War Chest

The summit opened with a clear signal of government commitment: India has earmarked $1.1 billion for a state-backed venture capital fund that will invest exclusively in artificial intelligence and advanced manufacturing startups. The fund represents a strategic bet that public capital can catalyze private investment in a sector where India has historically lagged behind the United States and China.

The timing is deliberate. With global AI investment flowing at unprecedented rates, India is positioning itself as an alternative destination—offering a massive domestic market, a deep pool of technical talent, and now, significant government backing.

The venture fund structure suggests a sophisticated approach to public investment. Rather than direct subsidies, India is deploying capital through a fund-of-funds model that can leverage private sector expertise in picking winners. It’s a model that has worked in other sectors, though AI’s rapid evolution presents unique challenges.

The Big Tech Stampede

The guest list reads like a who’s who of AI leadership. OpenAI CEO Sam Altman, Anthropic CEO Dario Amodei, Google CEO Sundar Pichai, and DeepMind CEO Demis Hassabis are all in attendance—an unprecedented convergence of rival executives in a single venue.

Their presence isn’t merely diplomatic. Each company announced concrete commitments:

OpenAI revealed that India now accounts for more than 100 million weekly active ChatGPT users—second only to the United States. The company announced plans to open two new offices in Bengaluru and Mumbai, and a partnership with the Tata group to deploy 100 megawatts of compute in India with an aim to scale to 1 gigawatt.

Anthropic is opening its first Indian office in Bengaluru and partnering with IT giant Infosys to deploy Claude models to Indian enterprises, starting with a dedicated Center of Excellence in the telecommunications sector.

“India is the second biggest user of Claude after the U.S. The opportunity here is not just about market size—it’s about the depth of technical talent and the ambition to build world-class AI infrastructure.” — Anthropic Representative

Local Champions Emerge

While global giants grab headlines, Indian startups are making moves of their own. Sarvam, a Bengaluru-based AI company, teased its upcoming smart glasses called Sarvam Kaze and released two new open-sourced models: Sarvam 30B and Sarvam 105B. The company also announced partnerships with Qualcomm, HMD, and Bosch to deploy its AI models across smartphones, feature phones, cars, laptops, and smartglasses.

Blackstone’s $600 million investment in Neysa, an Indian AI infrastructure startup, signals serious institutional interest. The company plans to deploy more than 20,000 GPUs and is reportedly raising another $600 million in debt financing.

The Adani Group announced a staggering $100 billion commitment to build AI data centers using renewable energy by 2035—a move that could trigger an additional $150 billion in ecosystem investments.

The Stakes for Global AI

India’s AI ambitions carry implications far beyond its borders. As the world’s most populous country and largest democracy, its approach to AI development—particularly around questions of data sovereignty, model governance, and equitable access—will influence how other developing nations navigate the technology.

The summit also highlights a growing trend: AI development is becoming increasingly distributed. While the U.S. and China remain dominant, countries like India are carving out significant roles in the global AI ecosystem—not just as consumers, but as builders and shapers of the technology.

For the executives gathered in New Delhi, the message is clear. India isn’t asking for permission to join the AI race. It’s building the track.

This article was reported by the ArtificialDaily editorial team. For more information, visit TechCrunch.