According to a report by Nasscom, the investment in India’s generative artificial intelligence (GenAI) startups saw an increase by two times in the first half (H1) of 2024 compared to the H2 2023.
Despite the increase in investments, there was a nearly 50 per cent decline in funding rounds during H1 2024 compared to H2 2023.
As per the report, during the same period, investments in GenAI startups in the US saw an increase by three times, while investments done by big tech companies in GenAI startups also saw a 1.25-fold increase. Top global hyper scalers are expanding their infrastructure investments across geographies, with over $80 billion in commitments announced towards data centre and cloud capacity over the next 10-15 years.
Further, revenue from GenAI is also gradually appearing as top IT companies are now prepared with strong use cases. Accenture announced $2 billion in GenAI revenue booked during H1 2024. India’s largest software exporter TCS also reported $900 million in Gen AI revenue booked during this period, with 10 per cent in production to be billed within the financial year 2024-25 (FY2025).
