Insider’s memory
- Indian investments in AI and deep tech surged in 2025, with $2.1 billion deployed across 289 deals and AI funding growing 58% year-over-year to $1.22 billion, according to the India Deep Tech Alliance 2026 Landscape Report.
- AI accounted for 188 deals in 2025, while non-AI deep tech sectors saw 147 deals worth $1.19 billion, bringing deep tech’s share of total venture capital and private equity activity to around 15%, up from 4% in 2016, with AI’s share climbing to 12.3% from around 4.5% in 2020.
- The alliance announced a dedicated allocation of $1 billion to Indian AI startups as part of more than $2.5 billion in member commitments, deployed $110 million to more than 50 companies since September 2025, and recently added Nvidia and Qualcomm Ventures to expand technical support and access to capital.
Investments in AI and deep technology in India intensified in 2025, with over $1 billion in transactions, according to the India Deep Tech Alliance.
The industrial group published its AI and Deep Tech investment landscape: 2026 edition report, showing AI financing in India grew 58% year-on-year in 2025 and deep tech now accounts for around 15% of total venture capital and private equity activity, up from 4% in 2016. The alliance also announced a dedicated $1 billion allocation to Indian AI startups to be rolled out over the next three years, drawn from more than $2.5 billion in broader deep tech commitments by its members.
What are the main conclusions?
According to India Deep Tech Alliance:
- AI recorded 188 transactions totaling $1.22 billion in 2025, a 58% increase in financing value.
- Non-AI deep tech sectors saw 147 deals worth $1.19 billion.
- Deep tech globally attracted $2.1 billion across 289 deals in 2025.
- Over the past decade, deep tech investments totaled $27.9 billion, spread across 2,178 deals involving 1,217 companies.
- The share of AI in venture capital funding increased from around 4.5% in 2020 to 12.3% in 2025.
The report singles out government policy as a key enabler, including India’s ₹1 million Research, Development and Innovation Fund, while warning that growth-stage capital, commercialization pathways and ecosystem coordination remain bottlenecks.
“India’s breakthrough in AI and deep technology is now measurable: IDTA’s inaugural report shows that AI funding jumped 58% in 2025 and deep technology is quickly becoming a core allocation in the Indian venture capital market. But this moment requires more than optimism; it requires decisive execution,” Arun Kumar, India Managing Partner of Celesta Capital and Chairman of IDTA, said in a statement.
Since its launch in September 2025, the India Deep Tech Alliance has mobilized more than $2.5 billion in commitments over five years and deployed $110 million to more than 50 companies over the past six months.
The alliance also announced its newest members, Applied Materials, CG Power, Lam Research, Larsen & Toubro and Micron Technology. In November, a second round of companies, including Nvidia and Qualcomm Ventures, joins the coalition. Nvidia will serve as a strategic technical advisor through its AI and accelerated computing platforms and training programs, while Qualcomm Ventures will provide additional capital and access to global partners, expanding the alliance’s commitments by approximately $850 million.
“Deep technology is now a key driver of the next wave of value creation in India, in semiconductors, AI, roboticsspace and advanced manufacturing,” said Sudhir Sethi, founder and chairman of Chiratae Ventures. “This report clearly shows the opportunity, but it also highlights the bottlenecks: growth capital, adoption pathways and ecosystem coordination.”