Bengaluru: The Karnataka government has approved a Rs 100 crore fund to support 50 emerging AI startups, marking a new phase in its strategy to strengthen the state’s innovation and deep tech ecosystem. The initiative, announced by IT Minister Priyank Kharge at CII INNOVERGE 2025, will be officially launched at the upcoming Bengaluru Tech Summit under the “Future Makers” track.
The fund aims to drive the use of artificial intelligence across priority sectors such as agriculture, healthcare, aerospace, and finance. By focusing on practical applications, the state intends to help early-stage companies develop scalable solutions that can compete globally. Officials noted that Karnataka currently accounts for nearly 40% of India’s R&D workforce and hosts 48 of the country’s 110 unicorns, underscoring its established position in the tech ecosystem.
Kharge emphasized the state’s “3P model” – People, Policy, and Participation which focuses on collaboration among academia, startups, and the government. The approach is designed to build stronger connections between research institutions and entrepreneurs to accelerate technology-driven outcomes.
To promote regional innovation, the government also plans to invest Rs 1,000 crore in developing tech clusters across Mangaluru, Mysuru, Hubballi-Dharwad, and Belagavi. This move reflects an effort to decentralize startup growth beyond Bengaluru and ensure broader access to infrastructure and funding.
As AI adoption accelerates across industries, Karnataka’s focus on structured funding, policy support, and regional expansion indicates a shift towards creating a more inclusive and sustainable innovation network across the state.
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