Nvidia Corp (NASDAQ:NVDA) and Qualcomm‘s (NASDAQ:QCOM) investment arm joined Indian and U.S. investors backing the South Asian country’s deep-tech startups, as the India Deep Tech Alliance (IDTA) expands with new members and fresh capital commitments exceeding $850 million.
Activate AI, InfoEdge Ventures, Chirate Ventures, and Kalaari Capital are among the other new investors joining the IDTA, which was launched in September with a $1 billion initial commitment.
Founding Member Nvidia To Train, Mentor Startups
Deep tech startups are an umbrella term for emerging companies in semiconductors, space, AI, biotech, robotics, advanced manufacturing, energy, and climate.
As a founding member, Nvidia will mentor and offer technical talks and training through its Nvidia Deep Learning Institute to emerging startups in India. Details of financial commitments were not disclosed.
“Nvidia’s depth of expertise in AI systems, software, and ecosystem-building will benefit our network of investors and entrepreneurs,” said Sriram Viswanathan, founding executive council member of the IDTA.
Members of the group will voluntarily invest capital and foster mentorship and network access over the next 5–10 years, and engage with the Indian government around the $12 billion initiative it launched just days ago, to spur research and development.
India Ramps Up AI Investments
Nvidia’s bet on India — home to the world's third-largest startup ecosystem- comes amid rising global interest in the country’s AI market, where ChatGPT-owner OpenAI has found its second-largest user base.
U.S. rivals are also deepening ties, with Google (NASDAQ:GOOGL) recently pledging $15 billion to build an AI hub in the southern city of Visakhapatnam.
On Monday, Indian Prime Minister Narendra Modi announced that the country will host the AI Impact Summit in February next year, with top policymakers and industry executives Nvidia CEO Jensen Huang, expected to attend.
Qualcomm’s AI Bet
Qualcomm‘s investment arm, Qualcomm Ventures, is also investing in the IDTA at a time when the smartphone chip giant has been trying to reinvent itself for the AI era.
In a bid to take on rivals like Nvidia and Advanced Micro Devices, Inc. (NASDAQ:AMD), the company recently launched two new AI chips to mark its entry into the fast-growing data center market. Qualcomm’s stock jumped 11% on the news.
The company is set to report fourth-quarter results after markets close on Wednesday. Investors will also look for commentary on the company’s timelines for monetizing its significant investments in artificial intelligence.
Shares in Qualcomm closed down 4.36% at $172.84 on Tuesday, and are up 19.5% so far this year.
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