India’s technology landscape is witnessing a sharp shift as global AI firms increasingly choose Bengaluru as their base, triggering a fresh surge in demand for commercial office spaces.
Leading artificial intelligence players and global software firms are setting up operations in the city, positioning it as a key hub for AI-led innovation. Earlier this year, Anthropic opened its Bengaluru office in February at The Executive Centre near Embassy Golf Link, marking its second Asian location after Tokyo. The move reflects the growing importance of India, which is already the second-largest user base globally for Claude.
Soon after, OpenAI confirmed plans to open new offices in Bengaluru and Mumbai by late 2026, adding to its existing presence in New Delhi. Meanwhile, European firm Mistral AI is in discussions with the Karnataka government to set up a global capability centre (GCC) in Bengaluru. The plan includes starting with engineering teams and later expanding into advanced research and large language model development.
“The firm is exploring managed spaces. It is not about large floor plates but deep engineering talent with minimal real estate,” said two people aware of the transactions.
Enterprise AI companies are also expanding rapidly. OpenText has grown its Centre of Excellence on Embassy Golf Links Road to over 70,000 sq ft, nearly tripling its Bengaluru workforce with a 194% increase in headcount over 2 years. The company is now running its OpenText 3.0 AI strategy from India, supported by more than 7,000 employees in the country.
Flexible workspace providers such as Smartworks, WeWork India, IndiQube and Table Space are seeing rising demand from AI-first startups. Deals ranging from 50 to 700 seats are becoming common across the city.
Key micro-markets including Outer Ring Road, Whitefield and Koramangala are witnessing increased activity, with Outer Ring Road emerging as the main AI corridor.
This growing influx of AI companies is not only strengthening Bengaluru’s position as a global innovation hub but also reshaping its commercial real estate landscape.
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