Prime Highlights
- Blackstone has agreed to invest up to $600 million for a majority stake in Neysa, with the total deal value potentially reaching $1.2 billion, including planned debt financing.
- The investment aims to rapidly expand India’s domestic AI computing infrastructure as demand for GPU capacity accelerates.
Key Facts
- Neysa currently operates around 1,200 GPUs and plans to scale beyond 20,000 GPUs, while India’s total deployed GPU count of under 60,000 is projected to grow nearly 30 times to over two million.
- Founded in 2023, the Mumbai-based startup employs 110 people and plans to more than triple revenue next year, supported by new funding for GPU clusters, networking, storage, and software development.
Background
Blackstone has agreed to invest up to $600 million in Mumbai-based AI infrastructure startup Neysa, as India steps up efforts to build its own artificial intelligence computing capacity. The deal gives Blackstone a majority stake in the company and could total $1.2 billion, including planned debt financing.
Neysa also plans to raise another $600 million in debt to sharply expand its GPU-based infrastructure. The startup now runs about 1,200 GPUs and plans to grow to more than 20,000 as demand for AI computing increases.
The investment comes at a time when global demand for AI chips and data center capacity continues to outpace supply. New AI-focused cloud providers, often called neo-clouds, are stepping in to offer faster and more customized services than traditional hyperscalers.
Neysa provides GPU-first infrastructure to enterprises, government agencies, and AI developers that require local data storage and low-latency services. CEO Sharad Sanghi said customers in sectors such as financial services and healthcare prefer domestic compute solutions with faster support.
According to Blackstone executive Ganesh Mani, India currently has fewer than 60,000 GPUs deployed. The firm expects that number to grow nearly 30 times to more than two million in the coming years, driven by enterprise and government demand.
The new capital will fund large GPU clusters, networking, and storage systems, along with software development. Founded in 2023, Neysa employs 110 people and plans to more than triple revenue next year while exploring global expansion.
