New Delhi, Feb. 21 -- At the India AI Summit, a less discussed but foundational piece of the AI stack broke into the headlines. Mumbai-based AI infrastructure startup Neysa announced a $1.2 billion capital raise led by alternative asset manager Blackstone, among the largest funding rounds in the country's AI infrastructure sector.

The deal comprises about $600 million in primary equity from Blackstone and co-investors, with plans to add up to another $600 million in debt financing for expansion.

Unlike consumer-facing AI tools, Neysa occupies the layer underneath-the compute infrastructure and essentially the Graphics Processing Unit (GPU)-powered data centres that train and run AI models.

The company plans to deploy 20,000 GPUs across...