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AI company AM Intelligence raises $3 billion in funding for Nvidia chip order
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Business Standard
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AI company AM Intelligence raises $3 billion in funding for Nvidia chip order

The Indian artificial intelligence infrastructure company AM Intelligence plans to raise up to $3 billion to finance its previously announced purchase of next-generation chips from Nvidia Corp. According to sources familiar with the situation, this is another sign that the technology boom is stimulating an increase in debt burden.

The financial package for the company, founded by founders of renewable energy producer Greenko Group Plc, may include bonds and bank loans, among other instruments, according to anonymous sources discussing the private details of the deal. Details on the distribution across various options are still being clarified, and the company also expects to receive $300 million as an advance payment from potential buyers. The parties note that negotiations are in the early stages, and terms may change.

A representative of AM Intelligence declined to comment on the situation, and Nvidia did not respond to requests for comment.

The planned deal demonstrates how the race for funding AI infrastructure construction in Asia and other regions is leading to increasingly complex financial structures. These structures combine traditional bank lending with private capital and upfront commitments from clients as developers strive to secure billions of dollars for the latest processors.

Globally, the debt associated with the AI boom has led to a flooding of markets with over $650 billion in debt in less than two years, according to data collected by Bloomberg.

In August, AM Intelligence announced that it had placed an order for Vera Rubin chips as part of a project worth over $8 billion. The company aims to be one of the first users of the advanced computing platform in Asia. This project is part of a broader plan to create 1 gigawatt of computing power. Its facility in Hyderabad is intended to run trillion-parameter AI models and next-generation agentic AI applications.

According to a KPMG report published in July, by the 2035 fiscal year, the Indian data center value chain could see an estimated investment opportunity of $90 billion, covering not only capacity expansion but also related infrastructure and services.

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New Indian manufacturers could benefit from the $3 trillion global AI investment cycle
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yourstory.com

New Indian manufacturers could benefit from the $3 trillion global AI investment cycle

According to a report by Avendus Capital, India's modern manufacturing sector is poised to gain significant benefits from the global artificial intelligence infrastructure investment cycle, which is estimated at $3 trillion.

The investment bank identified sectors such as aerospace and defense, space technology, robotics and automation, semiconductors, energy transition and advanced materials as those that will drive the next phase of India's industrial growth, opening opportunities for local companies.

The report emphasizes that the period of 2027–2028 is critical for commercialization, as companies transition from receiving policy support and project approvals to actual production.

This potential is driven by increased global investments in AI infrastructure, growing demand for energy infrastructure, and intensifying geopolitical security concerns. India's domestic demand, engineering talent, and regulatory framework can help manufacturers reduce import dependence and form globally competitive opportunities.

Koushik Bhattacharya, Managing Director and Head of Industrial Investment Banking at Avendus Capital, noted that 'the opportunity for modern manufacturing in India is substantial, but its right to win lies in specific segments.'

He added that since more than 80% of the $3 trillion in AI infrastructure investments have not yet been distributed globally, India has a chance to leverage its domestic demand base, engineering capabilities, and policy support.

Among the segments showing significant growth potential are semiconductors and space technology. Semiconductor consumption in India is projected to more than double: from $49.5 billion in 2025 to $106.5 billion by 2030, creating opportunities in chip design, packaging, testing, and specialized materials.

India's space economy is expected to grow more than threefold—from approximately $13 billion in 2025 to $44 billion by 2033. Domestic defense production should reach about $31.6 billion by 2030, while the robotics market could increase almost fourfold, reaching $4.6 billion by 2030, due to wider adoption and import substitution.

Furthermore, the report forecasts a further advancement of the clean energy manufacturing ecosystem in India up the supply chain over the next five years. By the end of the decade, the country could establish an integrated solar energy production chain, covering everything from ingots to modules, as well as gigawatt-hour scale battery cell factories and commercial production of domestic electrolyzer stacks and rare-earth-free motors.

Advanced materials represent another emerging opportunity; growing domestic demand and strong import dependency create room to build local capacity. Recycling is expected to expand first, followed by battery materials, and the production of rare-earth magnets may advance with policy support.

In conclusion, the report notes that the coming years will test India's ability to transform these opportunities into commercially viable manufacturing capacities.

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