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Karnataka Explores Subsidized GPU Access for Startups

The state considers computing subsidies alongside deeptech funding and a new AI hub.

11/13/2026
•Ghita Khalfaoui
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Karnataka is exploring plans to subsidize access to graphics processing units for startups through an artificial intelligence hub at IIIT Bangalore. State IT and BT Secretary N. Manjula discussed the potential support following inquiries from local founders regarding high compute expenses. This proposed assistance would complement existing subsidized cloud resources provided under the national IndiaAI Mission.


Rising hardware expenses

Hardware expenses have climbed sharply over the past year, led by a fourfold jump in memory prices. Graphic processing unit costs rose significantly as well, limiting experimentation for early-stage teams. The upcoming center intends to supply computing power so founders can validate concepts and refine applications.

AI hub investments

The Karnataka Cabinet approved the IIIT Bangalore artificial intelligence hub in September at a cost of ₹35 crore. The project includes a dedicated AI Living Lab designed to supply computing infrastructure and test emerging software. State officials plan to release additional operational details at the Bengaluru Tech Summit scheduled for November 17 to 19.

Additional ecosystem initiatives

Karnataka is also preparing to deploy a ₹300 crore deeptech fund of funds through venture capital managers. The government is reviewing a site near the Bengaluru airport for shared manufacturing spaces tailored to electronics and robotics startups. Officials have also designated 11 technology incubators at regional academic institutions outside Bengaluru to help distributed founders.


The committee guiding the deeptech fund expects to present its formal recommendations to the government shortly. Authorities will also review budgetary needs and eligibility terms before launching the subsidized graphics hardware initiative. Broader implementation details for the artificial intelligence facility will arrive during the upcoming Bengaluru Tech Summit.

Read more: yourstory.com