From Google to Amazon, TN turns top AI destination for global majors

The global giant Google is betting big on the state for a long-term play in AI, as the Tamil Nadu AI Labs by the company is set to be on track soon

With investments and projects coming from Google, PayPal, Applied Materials, Amazon Web Services, and many others, Tamil Nadu is fast becoming the favourite destination for artificial intelligence (AI) initiatives in India.

Google is betting big on the state for long-term play in AI, as the Tamil Nadu AI Labs of the company is set to be on track soon.

According to sources, the interests of these companies may even revolutionise the transportation system in Chennai as an AI-enabled one. It may link the suburban rail to buses and taxi services under one platform. 

Also, Google and the government are targeting to train 2 million youths on AI, through a curriculum-based approach, starting from engineering colleges in the state.

Tamil Nadu contributes 17 per cent of engineers – the highest by any state – out of the 1.5 million graduating in India annually. 

The company aims to skill 2 million youths in AI via Naan Mudhalvan and collaborate with startups. It wants to enable micro, small and medium enterprises (MSMEs) and the rural economy to use advanced technology.

This may lead to the development of an overall ecosystem in the long run, which may lead to more investments by Google in future, said industry sources. Google did not respond to queries from Business Standard. 

“Tamil Nadu is the first government in the country to come up with a safe and ethical AI policy. It has one of the most vibrant policy ecosystems, among all the states. In Bengaluru, it is the private sector that is taking most of the initiatives.

Google already has a tie up with IIT Madras's Wadhwani School of Data Science and AI, supporting its research centre to explore the fair and ethical development and use of AI. Other than Tamil Nadu, Telangana, and Karnataka are the states that are leading in AI initiatives,” said Jibu Elias, an AI industry expert.

During the ongoing visit of Tamil Nadu chief minister MK Stalin to the United States, digital payment solutions provider PayPal already signed a memorandum of understanding (MoU)

with Guidance Tamil Nadu for establishing a state-of-the-art advanced centre in Chennai. It would focus on AI and machine learning (ML) to generate over 1,000 high-end jobs.

On the other hand, Applied Materials, one of the largest semiconductor manufacturers in the country, is looking to come up with an advanced AI-enabled technology development centre. It would be for semiconductor manufacturing and equipment in Taramani, Chennai, creating 500 jobs.


Google remained tight lipped when asked about the possibility of a tie up with the state in changing its transportation ecosystem.

The company is already powering traffic systems in major cities like Bengaluru, Budapest, Jakarta, Manchester, Haifa, Hamburg, Rio de Janeiro, and Seattle.

In July, Amazon Web Services, too, announced its collaboration with Tamil Nadu Technology (iTNT) Hub to launch a generative artificial intelligence (Gen AI) startup hub programme for boosting innovation in AI and deep-tech space.

“The reason why these companies are betting big on Tamil Nadu is because of its skilled workforce. In addition to that, schemes like Naan Mudhalvan are easily adaptable to such projects,” said another industry source.

The Naan Mudhalvan platform aims to provide dynamic information for college students on courses and relevant information about industry-specific skill offerings.

This will enable the students of Tamil Nadu to get training in their chosen field of interest. Already, there are 2.3 million beneficiaries for the scheme.

Recent AI plans in Chennai
 

Amazon Web Services: To launch generative AI startup hub programme in collaboration with Tamil Nadu Technology (iTNT) Hub
 

PayPal: Advanced development centre in Chennai, which will generate 1,000 jobs
 

Applied Materials: An advanced AI-enabled technology development centre for semicon manufacturing and equipment in Taramani

Google: To skill 2 million youth in AI via Naan Mudhalvan, collaborate with startups, and enable micro small and medium enterprises and the rural economy with advanced technology

$7-10 bn - Size of Indian AI market now

$22 bn - Size of Indian AI market by 2027