Neysa, an artificial intelligence (AI) cloud provider, has announced a capital raise totalling $1.2 billion to provide the company with the resources needed to scale its operations rapidly.
The funding consists of $600 million in equity capital provided by private equity funds affiliated with Blackstone along with several co-investors. These include Teachers’ Venture Growth, TVS Capital, 360 ONE Assets, and Nexus Venture Partners.
On the strength of this equity investment, Neysa intends to secure a further $600 million through debt financing.
This move will inject significant capital into the country’s AI infrastructure and is part of the ongoing acceleration towards building the foundational components required for modern computing.
Neysa helps enterprises, startups, and public sector organisations identify, implement, and expand AI workloads. The investment is designed to enable Neysa to deploy more than 20,000 specialised graphics processing units (GPUs), across the country. These purpose-built systems are essential for organisations that need to train and run complex AI models.
By providing this infrastructure within India, Neysa allows local businesses and government entities to keep their data and processing power closer to home. This is particularly relevant for sectors such as financial services, healthcare, and public administration where data assurance is a high priority.
“This investment positions Neysa to play a meaningful role in advancing AI infrastructure in India and enables businesses and public institutions to deploy AI technologies more effectively as AI adoption accelerates,” said Ganesh Mani, a Senior Managing Director in Blackstone Private Equity.
For Neysa’s leadership team, the partnership is positioned as part of a broader effort to align with national objectives around technological self-reliance. Sharad Sanghi, co-founder and chief executive officer of Neysa, explained that the company is focused on the execution of what is known as sovereign compute.
“India’s AI ambition requires production grade infrastructure built and operated at scale. Neysa is focused on delivering the execution layer of sovereign compute, and AI research enablement and adoption in alignment with the goals of IndiaAI Mission. We seek to provide performance certainty and data assurance,” Sanghi remarked.
By leveraging Blackstone’s experience with global data centres and specialised cloud platforms, Neysa aims to establish India as a major destination for international AI research and development.
This initiative highlights the growing confidence that global investors have in India’s ability to host and manage the heavy-duty infrastructure that will power the next generation of innovation in the AI era.
“Over the past two decades, we have been committed to building businesses that build India, and this investment brings that to life. It reinforces Blackstone’s focus on backing the essential ‘picks and shovels’ of AI globally, including in India, a key market for Blackstone,” noted Amit Dixit, Head of Asia Private Equity at Blackstone.
Meanwhile, globally, Big Tech firms are locked in an AI infrastructure arms race, pouring hundreds of billions into data centres, custom chips and power in a long-term bet on competitive advantage that brings rising risks of overcapacity, energy constraints and investor scrutiny.
