Mumbai-based AI cloud company Neysa has secured USD 1.2 bn in investments from a consortium of investors led by US-based private equity firm Blackstone, according to a statement. This signals that Indian AI firms are increasingly attracting global capital, rivaling their competitors in the Gulf region.

The investor group has allocated USD 600 mn in equity capital which will open the door to raising an additional USD 600 mn in debt. The transaction values Neysa at an enterprise valuation of USD 1.4 bn, The Economic Times reports.

Neysa? The company offers GPU-led cloud infrastructure and AI computing services to enterprises, startups, and government clients. It plans to deploy over 20k GPUs using the proceeds from the transaction, marking a significant expansion in India’s current 60k GPUs installed.

Investor lineup: Other investors in the round include TVS Capital and 360 One Asset Management. Existing stakeholders — Nexus Venture Partners, Z47, Blume Ventures, and Japan’s NTT — also increased their allocation. Blackstone’s global data center holdings are valued at USD 130 bn, according to the news outlet.

Regional backdrop: Gulf states, including the UAE and Saudi Arabia, have articulated national AI strategies and are investing in computation and data-centric infrastructure to position themselves as regional AI hubs. India is mainly relying on domestic and foreign private investments for its AI buildout with policy initiatives aimed at facilitating these investments.

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