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Modern building facade with "AI Centre of Excellence" signage, reflecting innovation in Karnataka's HSR Layout. [thebengaluru

Editorial illustration for Karnataka approves Rs 20 crore AI Centre of Excellence in HSR Layout

Karnataka Launches ₹20 Crore AI Excellence Hub in Bangalore

Karnataka approves Rs 20 crore AI Centre of Excellence in HSR Layout

3 min read

Bangalore’s HSR Layout is about to become a new node in Karnataka’s tech push, with a ₹20 crore budget earmarked for an AI hub. Officials say the money will flow into a purpose‑built facility that aims to stitch together research, startups and established manufacturers. The plan arrives as the state rolls out a series of initiatives to modernise production lines and embed advanced analytics in traditional industries.

While the funding figure is modest by global standards, the location—near several engineering colleges and a growing startup ecosystem—suggests a strategic bet on talent pipelines. Critics note that past tech‑focused grants have produced mixed results, so the rollout will be watched closely by both investors and policymakers. The department overseeing the project has already given the green light, clearing the way for construction and staffing.

The Karnataka government has approved the establishment of an Artificial Intelligence Centre of Excellence (AI‑CoE) to accelerate Industry 4.0 adoption and deep‑tech innovation across sectors. The centre, named CATS, or Centre for Applied AI for Tech Solutions, has been cleared by the Department of…

The Karnataka government has approved the establishment of an Artificial Intelligence Centre of Excellence (AI-CoE) to accelerate Industry 4.0 adoption and deep-tech innovation across sectors. The centre, named CATS, or Centre for Applied AI for Tech Solutions, has been cleared by the Department of IT, and will be set up at the KEONICS facility in HSR Layout, in partnership with Nasscom, according to an official release. The initiative will have a total outlay of ₹20 crore spread over four years, funded through a 40:40:20 model, with contributions from the Ministry of Electronics and Information Technology (MeitY), the Government of Karnataka, and industry partners.

The CATS AI CoE will focus on priority areas such as AI, robotics and automation, supply chain optimisation, and digital transformation. It aims to strengthen Karnataka's innovation ecosystem by supporting start-ups, MSMEs, industry players, research institutions, and academia. Over the next four years, the centre is expected to establish advanced laboratories and testing facilities, support deep-tech start-ups, and facilitate proof-of-concepts, industry collaborations, and technology commercialisation, with collaboration envisaged with global technology and industry leaders.

Minister for electronics, IT Priyank Kharge said, "This is Karnataka's deep tech decade, and the CATS AI Centre of Excellence will be a launchpad for deep-tech start-ups and industry collaborations." He added that by bringing government, academia, and industry together, we are building a pipeline from research to market-ready innovation.

Related Topics: #AI Centre of Excellence #CATS #Industry 4.0 #Deep Tech #Karnataka #Artificial Intelligence #HSR Layout #Startup Ecosystem #Tech Innovation

Funding is set at ₹20 crore, spread over four years. The Centre for Applied AI for Tech Solutions, or CATS, will sit inside the KEONICS facility in HSR Layout, a location already linked to the state’s IT initiatives. Because the Department of IT cleared the project, it now moves forward in partnership with Nasscom, a body that has previously supported tech clusters.

Yet, how the centre will concretely accelerate Industry 4.0 adoption across sectors remains unclear. Will the investment translate into measurable outcomes? The brief mentions “deep‑tech innovation,” but no metrics or timelines for measuring success have been disclosed.

If the outlay is directed toward applied research, the expectation is that local firms could tap the expertise; however, the article does not specify which industries will be prioritized. Consequently, the initiative’s effectiveness will depend on execution details that have yet to be made public. In short, Karnataka has committed resources and institutional backing, but whether CATS will deliver the promised boost to AI‑driven solutions is still an open question.

Further Reading

Common Questions Answered

What is the Greater Bengaluru Integrated Township (GBIT) and where will it be located?

The GBIT is an ambitious 9,000-acre AI-powered township planned for Bidadi, located 30 km from Bengaluru. It is designed to be India's first AI-powered city, with over 2,000 acres dedicated to AI-based industries and serving as the state's second central business district.

How will the Bidadi AI city impact job opportunities in Karnataka?

The township is expected to create lakhs of job opportunities in information technology, AI, and services, with a specific 'local-first' policy to ensure opportunities for Karnataka's youth. Deputy Chief Minister D K Shivakumar emphasized that young people from the state will benefit from new jobs and skilling centres prepared for AI-driven industries.

What are the key infrastructure features of the Greater Bengaluru Integrated Township?

The township will feature a 300-metre-wide business corridor connecting major highways including STRR, NH-209, NH-275, and NICE Road to ensure seamless connectivity. Additionally, over 1,100 acres will be dedicated to parks and open spaces, making it one of the greenest urban spaces in the country, while also aiming to ease Bengaluru's traffic load through innovative planning.