In a major step to strengthen Artificial Intelligence development beyond Bengaluru, the Karnataka Cabinet has approved the establishment of a Centre of Excellence in Artificial Intelligence (CoE-AI) at the Indian Institute of Information Technology (IIIT), Raichur. The project has been allocated ₹12 crore over 5 years, according to Minister for Home, Information Technology & Biotechnology, and e-Governance Priyank Kharge.
The approval was granted during a Cabinet meeting chaired by Chief Minister D.K. Shivakumar under the Karnataka Government Transaction of Business Rules, 1977.
The project will receive ₹5 crore from the 2026-27 State Budget and ₹7 crore through the LEAP programme.
The AI Centre of Excellence will serve as a regional hub for the 13 districts of North Karnataka. Its objective is to decentralise the state’s technology ecosystem by promoting AI education, research, innovation and entrepreneurship in tier-2 and tier-3 cities.
The centre will focus on developing AI-driven solutions for sectors such as agriculture, healthcare, education, MSMEs and governance. It will also establish AI development laboratories, advanced computing infrastructure, prototype development facilities, skill development programmes, start-up incubation, innovation support and regional outreach initiatives.
To manage the project, the government will create a Special Purpose Vehicle (SPV) named IIIT Raichur ARIA (AI Research and Innovation Arena). The initiative will be implemented in 3 phases, starting with infrastructure development and gradually expanding towards innovation, entrepreneurship and long-term self-sustainability.
Kharge said the initiative will help position Raichur and North Karnataka as a major Artificial Intelligence hub, creating world-class opportunities for students, researchers, start-ups and industry.
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