Team Startupcity

• Karnataka launches Rs 100 crore AI fund to support India’s top 50 startups, aiming to strengthen the state’s position as a hub for deep tech and innovation.
• Fund targets core sectors like agritech, aerospace, healthcare, and finance, enabling startups to scale operations and adopt advanced AI technologies.
• State promotes inclusive innovation through its '3P model' (People, Policy, Participation) and Rs 1,000 crore investment in regional tech clusters across Mangaluru, Mysuru, Hubballi-Dharwad, and Belagavi.

Karnataka has announced a Rs 100 crore fund for India's best 50 artificial intelligence startups, marking the state's determination to consolidate its position as a leader in innovation and deep technology. Announced by IT Minister Priyank Kharge at the CII INNOVERGE 2025 event, the initiative will be officially launched at the Bengaluru Tech Summit 2025 under the 'Future Makers' segment, which is set to feature more than 20,000 startups from all over the country.

The fund seeks to help AI startups scale their operations, embrace advanced technologies, and establish their presence in global markets. Karnataka, which already houses approximately 40 percent of India's research and development skills and 48 of the nation's 110 unicorns, is using this effort to establish itself as a center for AI excellence.

By targeting core industries like agritech, aerospace, healthcare, and finance, the fund should boost the use of AI-based solutions, driving technological innovations that will revolutionize industries in India and beyond. The action highlights the state's focus on building a strong startup ecosystem that can provide scalable, high-impact solutions.

Commenting on this during the announcement, Kharge explained the state's '3P model' (People, Policy, and Participation) that puts emphasis on collaboration between government agencies, entrepreneurs, and academia. The idea is to make sure innovation does not get limited to metro areas but penetrates into emerging regions, making it a more inclusive and decentralized space for technology.

Also Raed: Unibose Technology Raises Rs 5.5 Crore to Scale ATEX Zone-0 Certified Safety Robots

To complement this initiative, Karnataka is to invest Rs 1,000 crore in local technology clusters in cities including Mangaluru, Mysuru, Hubballi-Dharwad, and Belagavi. The clusters are anticipated to fuel regional innovation, enhance local entrepreneurship, and unlock fresh opportunities for tech-led economic growth.

The move signals a larger strategy by Karnataka to develop future-proofed ecosystems capable of responding to the fast-changing global AI ecosystem. While artificial intelligence further transforms industries globally, the active strategy by the state in investments, policy making, and infrastructure building gives room for startups to flourish.

By investing in metropolitan and regional innovation clusters, Karnataka not only positions itself as a national leader in AI but also puts itself on the international map as a competitive force. By these initiatives, the state seeks to establish a supportive ecosystem in which startups can try, expand, and scale, further cementing Karnataka's image as a hub of technological innovation and entrepreneurial dynamism.

This strategic initiative reflects the government's determination to see the dividends of AI-led change extensively distributed, ultimately fueling India's wider digital economy and affirming Karnataka's position as a prime driver of tech-driven advancement.