Global investment giants Blackstone and SoftBank have reportedly initiated early-stage discussions to invest in Neysa Networks, a fast-growing Indian startup specializing in cloud infrastructure for artificial intelligence (AI). The potential deal, still in preliminary stages, reflects the broader global rush to secure long-term stakes in AI data centers and cloud technology—particularly in India, a market rapidly emerging as a key hub for hyperscale digital infrastructure.

According to people familiar with the matter, Blackstone is evaluating the possibility of taking a majority stake in Neysa, while SoftBank is considering the option of becoming a minority investor. Although no final decision has yet been made, insiders say the investment round may also attract additional global players eager to participate in India’s booming AI infrastructure space.

A Young Startup Drawing Big Investors

Founded in 2023 by industry veterans Sharad Sanghi and Anindya Das, Neysa Networks has quickly positioned itself as a critical enabler of AI adoption across industries. The startup provides cloud-computing infrastructure designed specifically to run AI models on demand, making it an essential resource for enterprises looking to deploy machine learning, foundation models, and other compute-intensive AI workloads at scale.

Despite being barely two years old, Neysa has already raised about US$50 million from early backers, including Z47 (formerly Matrix Partners India) and Nexus Venture Partners. These funds helped the company kick-start its vision of building high-performance AI-ready cloud and edge infrastructure tailored for the needs of Indian and global enterprises.

Now, with Blackstone and SoftBank entering the picture, Neysa is poised for its next major growth leap.

Potential Valuation and Strategic Stakes

Sources suggest that the proposed investment could value Neysa at under US$300 million. However, any participating investor—especially those seeking significant ownership—would likely have to inject substantial fresh capital to support Neysa’s next phase of expansion. This includes scaling:

• AI-ready data center capacity

• Edge infrastructure closer to end users

• Advanced cloud services optimized for AI deployments

The fresh funds would help Neysa accelerate its push to become one of India’s most robust platforms for large-scale AI computing.

If the deal materializes, it could mark SoftBank’s first new investment in India in more than three years, making it an especially notable comeback to the Indian startup ecosystem.

For Blackstone, the investment would further strengthen its already expanding digital infrastructure portfolio in the country. The firm has been aggressively pursuing real estate, technology, and cloud-infrastructure opportunities across India, and Neysa could become one more strategic addition.

Why the Global Spotlight Is on India’s AI Infrastructure

India is becoming a magnet for global capital in the data center and cloud-computing sectors. As enterprises accelerate adoption of AI, they require massive GPU farms, high-density data centers, and edge compute networks capable of supporting intensive AI model training and inference.

This surge in demand has set off a new wave of investment worldwide—not only in AI software, but in the crucial infrastructure that powers it.

Billions Flowing into AI Data Centers

Investors across the globe are pouring billions into building and expanding capital-intensive data centers. Despite ongoing debates about whether the AI sector is expanding too quickly without stable revenue models, the infrastructure rush shows no signs of slowing down.

Some notable developments include:

• In 2023, Brookfield Infrastructure Partners and Digital Realty joined hands with Reliance Industries Ltd. to develop large-scale data centers in India.

• Google and Adani Enterprises Ltd. recently announced a massive US$15 billion investment into Indian data center infrastructure focused on AI workloads and cloud computing.

• Blackstone’s portfolio company AirTrunk—a leading Australian data center operator—has also announced major plans to build its next facility in India, emphasizing the country’s importance in the global digital ecosystem.

With major corporate and governmental emphasis on AI adoption, India is expected to become one of the world’s largest markets for hyperscale infrastructure by the end of the decade.

Blackstone’s Growing Footprint in Digital Infrastructure

Blackstone has already established significant roots in India’s digital ecosystem, particularly in data centers and cloud platforms. Through Lumina CloudInfra and AirTrunk, the firm has been scaling high-density, high-efficiency data center models across the Asia-Pacific region.

In 2024, Amit Dixit, Blackstone’s Head of Private Equity in Asia, reaffirmed the company’s stance that data centers continue to be a major growth driver. Investing in Neysa would align perfectly with Blackstone’s broader strategy of strengthening its digital infrastructure assets in high-growth markets.

If the deal advances, Neysa could become the firm’s next major bet in the Indian AI and cloud-computing landscape.

SoftBank’s Re-entry into India’s Startup Ecosystem

A potential investment in Neysa would be significant for SoftBank, which has slowed down new investments in India over the last few years. The Japanese conglomerate, known for backing global tech giants and unicorns, has been cautious about deploying fresh capital amid economic uncertainty and global valuation corrections.

A stake in Neysa could signal SoftBank’s renewed confidence in India—particularly in the AI and cloud-infrastructure space, which is expected to see explosive growth driven by increasing digital transformation across sectors.

Why Neysa Networks Stands Out

Neysa’s appeal lies in its core mission: building AI-first cloud and data center infrastructure tailor-made for the coming decade of model-driven computing. With AI adoption skyrocketing across industries—from finance and healthcare to logistics, e-commerce, and telecommunications—companies need specialized infrastructure capable of handling modern AI workloads.

What Neysa Offers:

• High-performance cloud computing for AI training and inference

• On-demand AI model execution environments

• Edge computing infrastructure for reduced latency

• Scalable GPU-based platforms for enterprises

• End-to-end AI deployment support

Neysa’s founders, Sanghi and Das, bring deep industry expertise, which has helped the startup gain credibility rapidly. Their earlier leadership experience in cloud and data center operations gives Neysa a strong strategic foundation in a competitive market.

A Broader Movement: Global Funds Race Toward AI Infrastructure

The interest from Blackstone and SoftBank is part of a larger trend where global funds are aggressively competing to secure early positions in the AI infrastructure ecosystem. This ecosystem includes data centers, cloud compute networks, GPU clusters, and edge systems—collectively forming the backbone of modern AI.

India’s value proposition is particularly compelling:

• Large digital population and enterprise market

• Rapid cloud adoption

• Government push toward AI and data localization

• Relatively lower operational costs compared to Western markets

• Growing demand for locally hosted AI computing

As a result, the country is becoming a central node in the global race to scale AI-ready infrastructure.

What the Potential Investment Means for India

If finalized, the investment from Blackstone and SoftBank could have far-reaching implications:

• Boost to India’s AI cloud infrastructure capabilities

• Acceleration of domestic AI adoption

• More global investors likely entering the Indian AI ecosystem

• Strengthening India’s position as a global AI and data center hub

With tech giants and global investors pouring billions into the sector, India is on track to become one of the world’s most important centers for AI development and deployment.

Final Thoughts

The early-stage talks between Blackstone, SoftBank, and Neysa Networks underscore the soaring investor confidence in India’s AI infrastructure sector. Neysa, with its AI-optimized cloud platform, stands at the intersection of two booming industries: artificial intelligence and digital infrastructure.

Should the deal materialize, it would not only mark SoftBank’s return to India’s investment landscape but also further solidify Blackstone’s digital ambitions in the country. More importantly, it would signify a major leap for India as it positions itself as a global powerhouse in AI and hyperscale data center infrastructure.

With inputs from agencies

Image Source: Multiple agencies

© Copyright 2025. All Rights Reserved. Powered by Vygr Media.