Karnataka clears ₹20-crore AI Centre of Excellence to fast-track deep tech innovation in Bengaluru

New Centre for Applied AI for Tech Solutions (CATS) to come up at KEONICS, HSR Layout, in partnership with NASSCOM, focusing on AI-led industry solutions and start-up growth.

The Karnataka IT/BT Department has approved the establishment of an Artificial Intelligence Centre of Excellence (AI-CoE) named Centre for Applied AI for Tech Solutions (CATS) to accelerate the adoption of artificial intelligence and deep-tech innovation in the state.

The new centre will be set up at the KEONICS facility in HSR Layout, Bengaluru, and is part of the state’s broader push to strengthen its position as a global technology and innovation hub. The decision was cleared on Thursday as part of Karnataka’s deep-tech development roadmap.

IT/BT Minister Priyank Kharge said the initiative marks a key step in Karnataka’s technology journey. He described the coming years as the state’s “deep tech decade” and said the CATS AI Centre of Excellence will act as a launchpad for deep-tech start-ups and strong collaborations between government, academia, and industry. According to him, the centre is designed to create a clear pathway from research to market-ready products and solutions.

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The project will be implemented in partnership with the National Association of Software and Service Companies (NASSCOM). It has a total budget of ₹20 crore, to be spent over a four-year period. Funding will follow a 40:40:20 model, with contributions from the Ministry of Electronics and Information Technology (MeitY), Government of India, the Karnataka government, and industry partners, respectively.

As per the official release, the centre will focus on key priority areas such as artificial intelligence, robotics and automation, supply chain optimisation, and digital transformation. The initiative is aimed at supporting a wide range of stakeholders, including start-ups, MSMEs, industry players, research institutions, and academic bodies.

The performance of the AI centre will be measured through clear metrics. These include the number of start-ups incubated, prototypes developed, intellectual property filings, industry collaborations, and the number of skilled professionals trained through the programme.

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With this move, Karnataka aims to strengthen its innovation ecosystem, promote applied AI solutions, and enable technology-driven growth across sectors.