Government of Telangana signs MoU with Blaize to launch AI innovation hub

The Government of Telangana has signed a non-binding Memorandum of Understanding with US-based artificial intelligence company Blaize to establish the Telangana AI Innovation Hub, as part of a broader effort to position the state as a global centre for applied, industry-driven AI. The agreement was signed earlier this week at the World Economic Forum in Davos, Switzerland.

The MoU outlines a shared intention to build an ecosystem focused on practical AI deployment rather than experimental research alone. It reflects Telangana’s long-term strategy to integrate artificial intelligence into governance, infrastructure modernisation, and economic development, with an emphasis on real-world outcomes.

Under the agreement, Blaize intends to set up a research and development centre in Telangana. This facility is expected to focus on advanced AI computing capabilities that can support applied AI initiatives, including government-led projects aligned with the state’s strategic priorities. The collaboration is positioned as an early framework rather than a binding commercial commitment, with specific initiatives to be defined at a later stage.

While the MoU does not commit either party to immediate implementation, it establishes a pathway for structured collaboration. Proposed initiatives may move into pilot programmes or deployment phases, subject to approvals, policy guidelines, and project-specific agreements under state regulations.

Focus on applied AI and public sector deployment

The proposed Telangana AI Innovation Hub is envisioned as a platform to accelerate applied AI innovation across public sector use cases. Rather than focusing solely on foundational research, the hub is intended to support deployment-oriented initiatives that address infrastructure modernisation, sustainability, and service delivery challenges.

Through the hub, Telangana aims to combine advanced AI computing platforms with domain-specific applications. This approach is designed to ensure that AI development is closely linked to economic and societal outcomes, including improved efficiency in public services and stronger support for long-term development goals.

The MoU also outlines a framework for collaboration with relevant line departments and ministries within the Government of Telangana. These departments may work with Blaize and the hub to identify potential AI use cases, structure pilot initiatives, and evaluate their suitability for wider deployment. Any such projects would be governed by separate agreements defining scope, funding, and deliverables.

Importantly, the agreement emphasises that all initiatives would be subject to applicable policies and regulatory requirements. This reflects a cautious and structured approach to AI adoption, particularly in the public sector, where accountability, governance, and responsible use are critical considerations.

Leadership perspectives on collaboration and impact

Senior officials from both the Government of Telangana and Blaize described the MoU as a foundation for responsible and scalable AI deployment. Sanjay Kumar, Special Chief Secretary of the Department of Information Technology, Electronics and Communications and the Department of Industries and Commerce, said the state views AI as a strategic enabler rather than a standalone technology.

“Telangana is focused on using AI as a force multiplier for governance, sustainability, and economic growth,” Kumar said. “This collaboration provides a structured pathway to explore AI-driven pilots across critical sectors. By working through specific projects with Blaize, we aim to responsibly evaluate and deploy solutions that improve efficiency, resilience, and public outcomes.”

From Blaize’s perspective, the agreement reflects a shared emphasis on applied AI rather than theoretical development. Dinakar Munagala, Co-Founder and CEO of Blaize, said the collaboration aligns with the company’s focus on deployment-ready AI computing.

“This MoU with the Government of Telangana represents a meaningful step toward making applied AI real, scalable, and impactful,” Munagala said. “Telangana has demonstrated a clear vision for how AI can be translated from innovation into outcomes across infrastructure, sustainability, and public services.”

Munagala added that the company’s intended R&D presence in Telangana would support pilot programmes and deployment-oriented initiatives that bring advanced AI computing closer to real-world challenges. He highlighted the importance of moving AI from experimentation into operational environments where it can deliver measurable benefits.

Phani Nagarjuna, CEO of the Telangana AI Innovation Hub, described the launch of the hub as a milestone in the state’s AI journey. He said the collaboration is designed to strengthen the applied AI ecosystem by connecting advanced computing platforms with government-led use cases.

“The launch of the Telangana AI Innovation Hub marks a new chapter in the state’s AI journey,” Nagarjuna said. “Our collaboration with Blaize is designed to strengthen Telangana’s applied AI ecosystem by connecting advanced computing platforms with government-led use cases.”

He added that the hub is expected to act as a catalyst, helping promising ideas progress from concept to pilot and, where appropriate, into full deployments that deliver tangible impact. The emphasis, he said, will remain on outcomes that can be clearly measured and aligned with public sector needs.