A US startup looks at practical AI uses in India

Blaize Cofounder Dinakar Munagala Urges Shift From Chatbots to Real-World AI Use Cases

Artificial intelligence may have gained mainstream popularity through conversational tools like ChatGPT, but its true value lies in solving real-world challenges such as traffic management, healthcare efficiency, and agriculture productivity, said Dinakar Munagala, cofounder and chief executive of US-based AI chipmaker Blaize.

“AI came to the world in the form of ChatGPT — that’s the big thing everybody knows. But you derive the real practical value of AI when you deploy it in real use cases,” Munagala told ET in an interview.

The California-headquartered, Nasdaq-listed startup, which develops programmable AI processors and software for devices and data centres, conducts a significant share of its research and development in Telangana, where nearly half of its 300 employees are based.

Founded in 2011 by Munagala, Satyaki Koneru, and Ke Yin, Blaize has raised over $330 million from strategic investors including Temasek, Mercedes-Benz, and Samsung. The company focuses on building energy-efficient and cost-effective AI chips and software platforms.

Blaize currently runs projects across Asia, the Middle East, and the Americas, working on applications in public safety, defence, and smart traffic systems.

AI’s Opportunity in India

Munagala believes India presents strong opportunities for AI deployment, especially in agriculture, which contributes significantly to the country’s GDP but still faces productivity challenges.

“A majority of India’s GDP comes from agriculture, yet productivity remains lower. It is already being done in western countries. There’s no reason why it can’t be done in India,” he said.

He added that AI-powered “physical AI” systems installed at traffic intersections could potentially reduce congestion by 10–15% in cities like Bengaluru by analysing camera data in real time.

Telangana Expansion and MoU

Blaize, which set up operations in Hyderabad more than a decade ago, recently announced plans to scale up its Telangana presence. The company also partners with Yotta Infrastructure, delivering software services for the Hiranandani Group’s data centres.

At the World Economic Forum in Davos, Blaize signed a memorandum of understanding (MoU) with the Telangana government to support the state’s AI and semiconductor ecosystem.

The partnership aligns with Telangana’s launch of Aikam, an autonomous body aimed at promoting AI innovation, talent upskilling, and accelerating AI-first startups.

“Today the world of AI is largely focused on pilots and foundational models, but real-world applications that deliver true impact are still lacking,” said Phani Nagarjuna, founding CEO of the Telangana AI innovation hub.

Munagala also emphasized the need for better data-sharing across Indian states to strengthen AI model training and deployment nationwide.