Adani Enterprises to Acquire Majority Stake in AI and Cloud Startup

Coredge, a deep tech startup, has gained recognition for its innovative approach to sovereign AI and cloud platforms. It has a customer base across Japan, Singapore, and India, with cloud providers, government departments, and telecom service providers widely adopting its products. Coredge’s goal is to develop a comprehensive solution package for independent data centers, covering bare metal servers to services like Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) based on open-source technologies. Sirius Digitech will provide Machine Learning as a Service (MLaaS) while developing applications within its infrastructure. Coredge, is a tech startup specializing in Artificial Intelligence (AI) and cloud platforms, serves customers in Japan, Singapore, and India. It operates under its parent company, Parserlabs, which reported a turnover of Rs 45.63 crore for FY24.

Sirius Digitech acquisation CIPL:

Sirius Digitech, a joint venture between the Adani Group and the Abu Dhabi-based International Holding Company, has acquired a controlling stake in the tech firm Parserlabs India Private Limited (PIPL), the parent company of Coredge.io India Private Limited (CIPL). Sirius Digitech has entered into a securities purchase agreement to acquire a 77.5% stake in PIPL, the parent company of Coredge.io, and this transaction will be completed by the end of September 2024. The Adani Group, through its joint venture, will be able to expand its offerings in the data center and cloud services space, as stated in a press release on Tuesday. The company is engaged in the data center industry through a partnership called AdaniConneX. It manages a series of hyperscale data centers in India, commencing with locations in Chennai, Navi Mumbai, Noida, Vizag, and Hyderabad.

Director Jeet Adani Statement:

Adani Group Director Jeet Adani stated that sovereign data centers have become crucial for protect sensitive information and upholding national security, especially with the significant rise in AI-driven demand for computation and the sovereign data stack. In addition to these advantages, this acquisition enables us to provide AI capabilities directly to organizations in need of specialized sovereign cloud services for AI training and inferencing. This acquisition will reduce data security concerns and drive the company’s growth significantly in this new era of computing.

What is Sovereign AI:

Sovereign AI refers to a nation’s ability to develop AI using its own infrastructure, data, workforce, and business networks. The global need for nations to invest in sovereign AI capabilities has increased with the emergence of generative AI. This technology is reshaping markets, posing challenges to governance models, sparking new industries, and revolutionizing existing ones—from gaming to biopharma.

Conclusion: With its major security concern, technology, and deep roots in the cloud industry, Sirius Digitech’s acquisition of CIPL will be a game-changer in the upcoming years.

Disclaimer: This blog has been written exclusively for educational purposes. The securities  mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.