Mysuru Can Be India's Next AI and Quantum Hub, But Not Without Govt Support

Mysuru is emerging as a promising AI ecosystem, with its digital economy estimated at $1.3 billion, supported by more than 650 startups and over ₹5,700 crore in IT exports, according to a Karnataka Digital Economy Mission (KDEM) estimate. Now, some startups are pushing to transform the city into a hub for deeptech and quantum computing.

Mysuru-based edtech company Excelsoft Technologies has established Mysore Quantum AI (MQA), a Section 8 non-profit organisation, in collaboration with KDEM, The AI Thrive, and other ecosystem partners. The initiative aims to build an AI and quantum computing ecosystem through community development, infrastructure creation, research, and industry-led skilling.

"We want to set up a Centre of Excellence for AI and quantum computing in Mysuru. We started doing this in three phases. The first phase is community building, the second phase is setting up a Centre of Excellence, and the third phase is to build it into a frontier technology university based out of Mysuru specialising in education and research in AI and quantum computing," Adarsh Sudhindra, Chief Innovation Officer at Excelsoft, tells AIM.

Beyond Bengaluru

The initiative aligns closely with Karnataka's Beyond Bengaluru strategy under KDEM, which seeks to create technology ecosystems in tier-2 cities instead of concentrating innovation solely in Bengaluru.

Excelsoft, which recently went public, has operated from Mysuru since its inception in 2000 and currently employs around 800 people from the city.

"It is important for tier-2 cities like Mysuru, where you have companies like Excelsoft that can grow from a garage to becoming a company with a valuation of over ₹1,000 crore on the stock exchange," Sudhindra states.

Despite being recognised as an education hub with institutions, an Electronics System Design and Manufacturing (ESDM) cluster, KTECH Hub, and a growing professional workforce, Mysuru has a long way to go when it comes to bridging gaps in frontier technology infrastructure.

"The critical gap is that we lack a dedicated frontier technology platform," Sudhindra states. "We have to depend on Bengaluru for everything. Combining advanced infrastructure, quantum learning pathways, industry-grade skilling, startup support, expert mentoring—all that we have to look into Bengaluru because the ecosystem does not exist here."

MQA aims to change that by creating a deeptech moat for the city.

Aligned with National AI, Quantum Missions

As part of the proposal, MQA has submitted plans to both the Karnataka government and the National Quantum Mission to establish dedicated AI infrastructure in Mysuru.

The proposed Centre of Excellence will include a shared GPU computing cluster accessible to startups and researchers, a dedicated quantum computing laboratory, and a knowledge and research hub. 

It will also offer certification and workforce upskilling programmes, organise workshops, hackathons, and thought leadership initiatives, while providing incubation and ecosystem support to help deeptech startups build and scale from Mysuru.

"Excelsoft runs a GPU cluster within the campus. However, being a public limited company, we want to focus it on our own use cases. We want to have a dedicated GPU compute facility outside of that in Mysuru, open to the entire startup ecosystem," Sudhindra mentions.

The initiative is expected to be funded jointly by Excelsoft and, subject to approvals, central and state government support.

Sudhindra mentions that the proposal has been shared with the Karnataka Chief Minister's office as well as the National Quantum Mission. "It is very much in alignment with the Karnataka IT Policy, the LEAP initiative, and the National Quantum Mission from the Government of India," he states.

He also notes that Mysuru has historically missed opportunities to host premier national institutions.

"Mysuru may have missed opportunities like IIT, IIIT, and NFSU, but it already has strong fundamentals—an education base, a growing professional pool, quality of life, recognised innovation assets, and policy tailwinds," he explains.

While the initiative will initially collaborate with Bengaluru's ecosystem, it ultimately wants Mysuru to develop independent research capabilities.

"We will leverage the Bengaluru ecosystem, the Dharwad ecosystem, but build that ecosystem and excitement here," he states.

The ₹10 Cr Ask From Govt

The biggest hurdle, according to Excelsoft, is infrastructure. Unlike AI clusters that can be assembled using GPUs, even a small-scale quantum computer requires cryogenic systems, specialised facilities, and continuous maintenance.

"The biggest challenge is that quantum computers are very expensive today," Sudhindra says. "Getting hands on an 8-bit or 10-bit quantum computer today is very difficult. It cannot be done without government support."

He estimates that even an entry-level installation would require around ₹10 crore.

"We are looking at setting up a two-digit qubit quantum computer... around an 8-qubit quantum computer. That will cost somewhere around ₹6–8 crore today, and another couple of crores for the necessary infrastructure."

Why Private Companies Aren't Investing

Beyond infrastructure costs, Sudhindra believes the commercial reality of quantum computing discourages private investment.

"Quantum is where AI was five years ago," he states. "It will take about three to five years for companies to start seeing any revenue. It is in true research mode."

As the returns remain uncertain, companies are reluctant to fund expensive quantum hardware.

"It is the responsibility of the government to bring in that money and enable the ecosystem with a five-year, ten-year, fifteen-year horizon in mind," Sudhindra mentions.

MQA is closely watching Andhra Pradesh's ambitious quantum initiative in Amaravati, which has emerged as India's most visible state-backed quantum project.

Sudhindra believes India must begin investing in technologies before expecting commercial returns. One of the biggest challenges, he says, is that talent follows infrastructure, while infrastructure often follows talent.

"It is a chicken-and-egg type problem. Unless you have infrastructure, you will not get good people and researchers."

MQA hopes its community-first approach will eventually convince policymakers that Mysuru deserves dedicated investment.

Beyond infrastructure, MQA plans an aggressive skilling programme across Mysuru's engineering colleges and universities, including the University of Mysore, NIE, SJCE, and JSS institutions.

"We will be collaborating with local universities and local tech ecosystems," Sudhindra adds.

The programme will include certifications, diploma courses, and hands-on training in AI, quantum mechanics and quantum computing.

"We plan to upskill at least 20,000 skilled workers across the whole spectrum," he states.