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High technology industry

Generative AI Investment in India Sees Significant Surge in H1 2024

Strategic Insights

— 1 min read

India's generative AI startup investment saw a remarkable two-fold increase in the first six months of 2024 (January-June) compared to the second half of 2023 (July-December). This surge in investment comes as India's top IT companies, such as Accenture and TCS, are now preparing strong use cases for generative AI, with revenue from this technology starting to emerge. Despite the increase in investments, however, funding rounds for generative AI startups in India declined by nearly 50% during the same period compared to the second half of last year.

Key Takeaways:

  • Investment in India's generative AI startups increased by two times in the first six months of 2024 (January-June) compared to the second half of 2023 (July-December).
  • Despite the increase in investments, funding rounds for generative AI startups in India declined by nearly 50% during the same period compared to the second half of last year.
  • Investments in Gen AI startups in the US saw an increase by three times, while investments done by big tech companies in Gen AI startups also saw a 1.25x increase.
  • Top global hyperscalers plan to expand their infrastructure investments across geographies, with over $80 billion in commitments announced towards data centre and cloud capacity over the next 10-15 years.
  • Accenture announced $2 billion in Gen AI revenue booked during H12024.
  • TCS reported $900 million in Gen AI revenue booked during H12024, with 10% of production to be billed within FY 2025.
  • India's largest software exporter TCS has 10% of its production in Gen AI to be billed within FY 2025.

Statistics:

  • 2x increase in investment in India's generative AI startups in H1 2024 compared to H2 2023
  • 50% decline in funding rounds for generative AI startups in India in H1 2024 compared to H2 2023
  • 3x increase in investments in Gen AI startups in the US in H1 2024
  • 1.25x increase in investments done by big tech companies in Gen AI startups in H1 2024
  • $80 billion in commitments announced towards data centre and cloud capacity by top global hyperscalers over the next 10-15 years
  • $2 billion in Gen AI revenue booked by Accenture during H12024
  • $900 million in Gen AI revenue booked by TCS during H12024, with 10% of production to be billed within FY 2025

Sources:

  • Nasscom, Generative AI tracker
  • Accenture, press release on Gen AI revenue
  • TCS, press release on Gen AI revenue

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