The Government of Telangana has signed a non-binding memorandum of understanding (MoU) with US-based Blaize Inc. to explore the launch of the Telangana AI Innovation Hub, as the southern Indian state steps up efforts to position itself as a global centre for applied artificial intelligence.

The MoU was signed earlier this week on the sidelines of the World Economic Forum in Davos, outlining a framework for collaboration focused on industry-driven and deployment-ready AI initiatives.

Under the agreement, Blaize intends to establish a research and development (R&D) centre in Telangana, focused on advanced AI computing to support applied AI use cases and government-led projects. The proposed collaboration will prioritise applied research, pilot programmes and deployment-oriented initiatives aligned with the state’s strategic priorities.

According to the Telangana government, the MoU provides a structured pathway for relevant line departments and ministries to work with Blaize on identifying and developing potential AI initiatives. These may advance into pilot or implementation projects, subject to approvals, guidelines and project-specific agreements.

Any future initiatives will be executed through separate contracts defining scope, funding and deliverables, in line with applicable state policies and regulations. The government stressed that the MoU itself is non-binding and does not commit either party to specific investments or projects.

The proposed Telangana AI Innovation Hub (TAIH) is envisioned as an enabling platform to accelerate applied AI innovation across public sector use cases, infrastructure modernisation and real-world deployments.

Through the hub, Telangana aims to combine advanced AI compute capabilities with domain-specific applications to support economic development, sustainability and public service delivery.

Sanjay Kumar, Special Chief Secretary for Information Technology, Electronics and Communications, and Industries and Commerce, said the collaboration aligns with the state’s focus on responsible and outcome-driven AI adoption.

“Telangana is focused on using AI as a force multiplier for governance, sustainability, and economic growth,” he said. “This collaboration provides a structured pathway to explore AI-driven pilots across critical sectors.”

Blaize co-founder and chief executive Dinakar Munagala said the MoU reflects a shared emphasis on translating AI innovation into practical outcomes. He added that the company’s intended R&D presence would support deployment-oriented initiatives addressing infrastructure, sustainability and public service challenges.

Phani Nagarjuna, chief executive of TAIH, said the hub would act as a catalyst to move promising ideas into pilots and, where appropriate, real-world deployments that deliver measurable impact.

Indian states are increasingly competing to attract AI investment and talent as governments seek to modernise public services and infrastructure using data-driven technologies. Telangana, home to a large technology and startup ecosystem centred around Hyderabad, has positioned applied AI as a key pillar of its digital and industrial strategy.

If implemented, the collaboration with Blaize could strengthen the state’s AI compute capabilities while providing a testbed for government-led AI deployments, a model that regional policymakers across Asia are watching closely.

The Telangana government and Blaize will next work through relevant departments to identify priority use cases and structure potential pilot projects. Any deployments will be subject to further approvals and detailed project agreements before implementation.