Gujarat Government Launches Indian AI Research Organization at GIFT City
The Gujarat government has taken a significant step in advancing artificial intelligence research by establishing the Indian AI Research Organization (IAIRO) as a special purpose vehicle. This new entity will spearhead research and development activities at the AI Centre of Excellence (AI CoE), which was inaugurated in January 2025 at GIFT City in Gandhinagar.
Unique Public-Private Structure for AI Advancement
According to a notification issued by the Department of Science and Technology on January 8, 2026, IAIRO will function as a private company limited by shares but will operate as a non-profit organization. The primary objective is to advance research and development activities in artificial intelligence by providing innovation facilities. The funding structure features government and private equity in an 11:89 ratio, creating a unique collaborative model for technological advancement.
Governance and Leadership Framework
The notification outlines that IAIRO's board of directors will consist of a minimum of two directors and a maximum of fifteen directors. The initial seven directors named in the notification include:
- Amit Sheth, representative of private promoters
- Ajai Chowdhary, director
- Sharad Sharma, director
- Ramesh Jain, director
- P Bharathi, SST secretary
- A nominee of the Gujarat government
- A nominee of the Union government
- A nominee of the Indian Pharmaceutical Association (IPA)
Financial Commitments and State Support
Under a tripartite agreement between the Government of India, Government of Gujarat, and private partners, the state government has committed to contributing 33.3% of the total project cost for research and development in AI and allied services. Specifically, the notification states that "the state government will provide funds up to Rs 100 crore, as a grant/contribution over a period of five years as the state's share." This substantial financial commitment underscores Gujarat's dedication to becoming a leader in artificial intelligence research and development.
Building on Existing Infrastructure
The establishment of IAIRO builds upon previous initiatives in Gujarat's AI ecosystem. In January 2025, the Gujarat government, in collaboration with NASSCOM and Microsoft, established the AI Centre of Excellence at GIFT City. This facility, operationalized over an area of 10,000 square feet, provides a collaborative environment for startups, industry, and academia while offering high-speed computing infrastructure facilities.
Comprehensive Functions of IAIRO
The Indian AI Research Organization has been assigned several critical functions to fulfill its mission:
- Scientific Research and Innovation: To carry out scientific research, innovation, and development in artificial intelligence and allied technologies.
- Intellectual Property Management: To safeguard, manage, and facilitate the commercialization of intellectual property generated through research activities.
- Knowledge Hub and Advisory Role: To act as a knowledge hub, think-tank, and advisory body to government, industry, and other stakeholders on matters relating to artificial intelligence.
- Resource Mobilization: To raise funds and resources from philanthropic organizations, private and public companies, government agencies, and national or international bodies to support AI research initiatives.
This strategic initiative positions Gujarat at the forefront of India's artificial intelligence research landscape, creating a sustainable model for public-private partnership in cutting-edge technology development. The establishment of IAIRO represents a significant investment in India's technological future, with GIFT City serving as the hub for this ambitious AI research ecosystem.
