Google Inks AI Accelerator Pact With Telangana After Microsoft Launches R&D Hub

SUMMARY

Google will set up an AI Accelerator in Hyderabad to support startups and develop solutions across sectors like agriculture, mobility and education, marking another major tech investment in Telangana

Microsoft launched an 11 lakh sq ft R&D facility in Hyderabad and announced Rs 15,000 crore investment in AI data centres, along with training programmes targeting 120,000 people across schools, industry and government sectors

Telangana continues to attract significant tech investments, with AWS committing Rs 60,000 crore and other companies pledging Rs 20,000 crore for data centres, as the state develops its 200-acre AI City project

Google has entered into a strategic agreement with the Telangana government to set up an AI accelerator in Hyderabad to support startups and serve sectors like agriculture, mobility, education, sustainability and governance.

“An MoU was signed at the IT-Hub in presence of the chief minister and IT and industries minister,” the government said.

The move from Google follows its fellow Big Tech peer Microsoft rolling out an 11 lakh sq ft facility in the city. CM Reddy and the IT minister attended the inauguration of the Microsoft unit, which is its largest R&D hub outside the US headquarters and will employ 2,500 additional employees.

“Hyderabad and Microsoft have grown together, and as a proud representative of this state, I can say with certainty this is just the beginning. The world looks at Hyderabad today as a technology powerhouse, a city that nurtures innovation and attracts global talent,” the Economic Times quoted CM Reddy as saying.

Microsoft employs more than 20,000 professionals in India, with more than half of them based in Hyderabad. The company plans to hire 4,800 more with the expansion going on stream.

“It will enable our teams to innovate and develop next-generation AI products,” Rajiv Kumar, managing director and president of Microsoft India Development Centre, said.

The company announced three training initiatives in partnership with the Telangana government. The ADVANTA(I)GE TELANGANA programme will introduce AI education to 50,000 students across 500 government schools. The AI-Industry Pro programme aims to upskill 20,000 industry professionals, while the AI-Govern initiative will train 50,000 government officials in digital productivity, generative AI and cybersecurity.

Microsoft also plans an AI centre of excellence in collaboration with the government, featuring cloud infrastructure and a centralised AI knowledge hub. The company committed Rs 15,000 crore for hyperscaling AI data centres in Telangana.

The state received significant investments in the technology space in the recent past. In January, AWS announced plans to invest Rs 60,000 crore for data centres in Hyderabad, while Tillman Global Holdings and Blackstone committed Rs 20,000 crore in data centre projects.

Telangana has sharpened its focus on AI development, signing 26 agreements with private players last September. The state is developing a 200-acre AI City near Hyderabad and aims to become a Rs 82 lakh crore ($1 trillion) economy.