US chip designer Nvidia has joined India’s push to support startups working on advanced technologies like chipmaking, artificial intelligence, robotics, biotech and space exploration as the world’s fastest growing major economy looks to catch up with global competitors by plugging a funding gap.
On Wednesday, Nvidia became a ‘founding member’ of the India Deep Tech Alliance — a group of Indian and American investors launched in September with a $1 billion initial commitment to support deep tech companies.
Nvidia will mentor members of the alliance and the country’s emerging startups by helping them with strategic and technology counsel, according to a press statement from IDTA.
Also on AF: China Blocks Use of Foreign AI Chips in State Data Centres
Nvidia will also provide its AI software and hardware technologies to the group, aid research work and participate in policy dialogues in India, the statement said.
The move from the world’s most valuable company comes days after the Indian government launched a $12 billion initiative to spur research and development in key technologies.
So far, India has been a tech services giant, but it still trails in manufacturing.
Deep-tech startup funding in India surged 78% to $1.6 billion last year, but still accounted for only about one-fifth of the $7.4 billion raised overall, according to a report by industry body Nasscom.
An Indian minister’s call in April for startups to emulate China by focusing on high-end technology rather than grocery deliveries had drawn backlash from entrepreneurs, who said the government needed to do more to support innovation.
Experts have said deep-tech investment is vital to build core technologies such as chips and artificial intelligence that secure economic and strategic independence.
Sriram Viswanathan, founding managing partner at Celesta Capital, told Reuters the increasing government support meant that “there’s no better time for India to look at deep tech”.
Celesta, which has invested in Indian startups working on space-tech and drone making, was among the group of investors that launched the alliance.
$850 million secured so far
The alliance’s members aim to deploy their own capital to Indian deep-tech startups over the next five to ten years while also providing mentorship and network access.
“There’s no real pooling of capital. It’s voluntary,” Viswanathan said, drawing parallels to Nasscom.
The group has, so far, secured more than $850 million in capital commitments. It plans to deploy the bulk of the funds over the next five to 10 years.
This support is key to plugging a gap that founders and analysts describe as chronic underfunding of the research-driven startups. The firms have, so far, struggled to draw venture capital, given their long development timelines and uncertain paths to profitability, they say.
IDTA says it is committed to providing capital access, technical mentorship, market linkages, and policy engagement to help founders build globally competitive technology companies in India.
While the group is in line with New Delhi’s larger $12-billion scheme, it promises investors full autonomy over their funds and investment decisions, it says.
Aside from Nvidia, US chipmaker Qualcomm also joined the alliance on Wednesday.
“India’s deep tech community plays a critical role in realising the global AI opportunity,” the company’s senior vice president Quinn Li told Indian financial news platform Moneycontrol, adding that Qualcomm was “excited to support the ecosystem”.
- Vishakha Saxena, with Reuters
Also read:
Google To Build $15bn AI Data Centre In Biggest India Investment
India To Pump $1.2 Billion Into AI Projects, Startups
India Taps AI in Forecasts as Extreme Weather Weighs on Economy
Apple Looks To Boost China, India Investment Despite Trump Pressure
India Now the Biggest Source of Smartphone Exports to the US
India’s Big Plans To Decarbonise Industries Struggle To Take Off
