Another win for the Make In India policy, but a small one in terms of product volume Lenovo revealed on Tuesday that it will manufacture AI servers at its plant in Puducherry, India, and has opened a new infrastructure research and development lab in Bengalaru.

BENGALURU (Reuters) - China's Lenovo Group will start making artificial intelligence (AI) servers at its plant in southern India and opened an AI servers-focussed R&D lab in the tech hub of Bengaluru, the electronics hardware maker said on Tuesday.

AI sever manufacturing and the infrastructure R&D lab is part of Lenovo's commitment to invest $1 billion in AI innovation over 2023-26

Lenovo will be making AI servers in India and exporting to other countries and has also opened a new R&D facility in Bengaluru.

Lenovo (OTC: LNVGY) expands AI server production in India & aims to export 60% of output to Asia-Pacific amid growing market projected for 18% CAGR.

India’s second largest PC maker’s bid to manufacture servers in India comes on the back of a three-year $1-billion investment in AI announced last year to develop AI platforms, computing devices and servers.

Chinese IT hardware manufacturer, Lenovo, has upped its India manufacturing play. The company, which has been selected in the Rs 17,000-crore, IT production-linked incentive scheme, has now decided to start manufacturing 50,000 graphics processing units-based AI servers in India next year.

Lenovo India will start manufacturing 50,000 GPU-based AI servers in India next year, the company said on Tuesday.

Lenovo India plans to produce 50,000 AI servers with GPUs in India starting next year. The company also announced the establishment of its fourth-largest research and development centre in Bengaluru. Lenovo India Managing Director Shailendra Katyal stated that these servers will be manufactured locally and exported from their Puducherry facility.

The company’s Puducherry plant, operational since 2005, has been upgraded to produce enterprise AI and GPU servers.

China-based Lenovo has announced plans to begin manufacturing AI servers at its Puducherry plant in southern India and has established a dedicated AI servers R&D lab in Bengaluru. This initiative could position India as one of the few countries with significant AI server production capabilities.