Major investment firms Blackstone and SoftBank Group are currently exploring the possibility of acquiring ownership shares in Neysa Networks, an emerging cloud technology company based in India, according to reports.
The US private investment firm is exploring the possibility of acquiring an ownership interest, while SoftBank is contemplating purchasing a smaller portion of ownership.
Established in 2023 by entrepreneurs Sharad Sanghi and Anindya Das, Neysa specializes in delivering cloud-based computing solutions that enable on-demand deployment of artificial intelligence models.
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The emerging technology company has successfully secured approximately $50 million in funding from notable venture capital investors, including Z47 (previously operating under the name Matrix Partners India) and Nexus Venture Partners.
The potential investment might estimate Neysa's worth at under $300 million, with the understanding that any interested investor would probably be required to provide supplementary funding to support the company's growth initiatives.
Investors across the globe are channeling substantial financial resources into expensive, infrastructure-heavy data centers designed to accommodate the swift expansion of artificial intelligence services.
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The investment trend persists despite growing skepticism from some who wonder if the sector might be constructing infrastructure beyond what is economically justified, particularly given that AI technologies have not yet demonstrated sustained profitability.
If SoftBank proceeds with this investment, it would represent the company's inaugural new venture in India after a hiatus of over three years. For Blackstone, such a potential deal would strengthen its digital infrastructure investments in India, a market where the firm has been progressively increasing its stakes in real estate and infrastructure sectors.
Amit Dixit, who leads private equity for Blackstone in the Asian market, stated early this year that data centre investments continue to be a strategic priority for the company. Blackstone currently has an investment in Lumina CloudInfra within India, and its existing data centre platform AirTrunk, which was previously purchased, has revealed intentions to construct an additional data centre facility in India.
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During the year 2023, Brookfield Infrastructure Partners and Digital Realty established a collaborative partnership with Reliance Industries Ltd., while simultaneously, Google and Adani Enterprises Ltd. recently disclosed their intentions to invest approximately $15 billion in data center infrastructure within India.