Indian AI infrastructure startup Neysa has secured a landmark $1.2 billion capital raise, spearheaded by a significant investment from private equity giant Blackstone. This funding, comprising up to $600 million in equity and an additional $600 million in planned debt, will fuel Neysa's ambition to deploy over 20,000 GPUs. The move positions the company at the forefront of India's burgeoning AI revolution, providing critical compute power for enterprises and government bodies.
Strategic Investment to Fuel India's AI Ambitions
The definitive agreement will see Blackstone and co-investors, including Teachers’ Venture Growth and TVS Capital, inject up to $600 million, securing a majority stake for Blackstone. Neysa intends to leverage this equity to secure an additional $600 million in debt financing to complete its substantial capital plan. This financial backing marks a significant escalation from the company's previous funding rounds, signaling strong investor confidence in its growth trajectory.
Founded in 2023 by veteran entrepreneur Sharad Sanghi, Neysa operates as a specialized AI acceleration cloud platform headquartered in Mumbai. The company designs and operates GPU-based infrastructure within India, enabling clients to train, fine-tune, and deploy complex AI workloads locally. Its services cater to a diverse customer base across financial services, technology, healthcare, and the public sector.
Tapping into Sovereign Compute Demand
This investment arrives as India intensifies its push for "sovereign compute," aiming to reduce reliance on foreign cloud providers for sensitive AI tasks. Neysa operates as a "neo-cloud," offering customized GPU-first infrastructure and enhanced support that larger hyperscalers often do not provide. This model directly addresses the growing demand from regulated industries and government agencies for secure, localized data processing and AI development.
Blackstone views this partnership as a core part of its global strategy to invest in the foundational tools of the AI economy. Amit Dixit, Head of Asia Private Equity at Blackstone, emphasized the firm's commitment to building businesses that advance India's technological transformation. This deal complements Blackstone's existing portfolio of digital infrastructure assets, which includes data center giants QTS and AirTrunk, and specialized AI provider CoreWeave.
Scaling Operations for a Burgeoning Market
With the new capital, Neysa plans a dramatic expansion of its operational capacity, scaling from its current 1,200 GPUs to over 20,000. This expansion is a direct response to projections that India's GPU count could surge from under 60,000 to over two million in the coming years. The bulk of the funds will be allocated to acquiring and deploying large-scale GPU clusters, including associated networking and storage hardware.
Neysa's competitive edge extends beyond hardware, focusing on delivering high-touch, customized support that is critical for enterprises deploying mission-critical AI. The company also plans to attract a wider user base, including startups and researchers, through flexible, cost-effective models like fractional GPU access. This strategy aims to democratize access to high-performance computing while building a robust ecosystem around its platform.
Blackstone's substantial investment in Neysa marks a pivotal moment for India's AI infrastructure, providing the resources for a domestic player to achieve global scale. The partnership validates the growing demand for sovereign AI capabilities and specialized cloud services in one of the world's fastest-growing digital economies. As Neysa scales its operations, it is poised to become a critical enabler of innovation, supporting both national ambitions and the broader AI industry.