Blackstone leads $1.2 billion funding round in AI startup Neysa

US alternative asset manager Blackstone is leading a $1.2 billion (about Rs 10,867 crore) investment in cloud infrastructure startup Neysa. This would be the largest funding round ever in India’s AI sector.

Blackstone and Neysa said in a joint statement that the $1.2 billion funding will be divided equally between new equity and debt.

People familiar with the deal said Neysa has secured an enterprise valuation of $1.4 billion.

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The funding round also included investments from TVS Capital, 360 One Asset Management, and Neysa’s existing investor Nexus Venture Partners.

Other current investors include Z47, Blume Ventures, and Japanese technology company NTT.

This is Blackstone Inc’s first investment in a pure AI-focused platform in India. Globally, it has also invested in OpenAI and Anthropic.

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“India’s AI ambition requires production-grade infrastructure built and operated at scale. With Blackstone’s experience in scaling critical infrastructure, we aim to help establish India as a globally relevant AI compute destination,” said Sharad Sanghi, Co-Founder and Chief Executive Officer of Neysa.

Amit Dixit, Head of Asia Private Equity at Blackstone, said, “This investment reinforces Blackstone’s focus on backing the essential “picks and shovels” of AI globally, including in India, a key market for Blackstone.”

Ganesh Mani, a Senior Managing Director in Blackstone Private Equity, said, “This investment positions Neysa to play a meaningful role in advancing AI infrastructure in India and enables businesses and public institutions to deploy AI technologies more effectively as AI adoption accelerates.”

Neysa offers specially designed, cost-effective GPU-based AI infrastructure that helps businesses and institutions train, improve, and run their AI applications.

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