Bengaluru (formerly Bangalore) is no longer merely India’s Silicon Valley—it is evolving into a global AI hub. Leading technology companies are investing heavily in the city, establishing research and development centres, AI hubs, and expansive campuses.
The city is attracting companies and talent with its extensive ecosystem of technology professionals—outpacing even California. Experts note that the city’s affordability, competitive salaries, and ease of job transitions are key factors driving its growth. Startups increasingly choose Bengaluru over San Francisco due to lower living costs that extend their runway.
Beyond technology, Karnataka, with Bengaluru as its capital, is also emerging as a manufacturing powerhouse, attracting significant investments in electric vehicles, renewable energy, and steel production, thus generating thousands of jobs.
Even so, Bengaluru’s rapid growth as a global tech and manufacturing hub does not alleviate ongoing concerns regarding its infrastructure and civic issues. The inept attitude of successive governments has consistently been met with severe backlash.
Global Tech Hub
Last month, Google opened its new office, Ananta, in Bengaluru. This 1.6-million-square-foot campus employs over 5,000 staff members working on Android, Search, AI, and DeepMind.
“Bangalore is one of the world’s fastest-growing hubs for tech, entrepreneurship, and talent, and we have always looked to channel this vibrant ecosystem’s energy to make ‘AI for India, Made in India’ a global reality,” said Manish Gupta, senior director, Google DeepMind.
Amid global layoffs, Meta, the parent company of Facebook, Instagram, and WhatsApp, is expanding its presence in India by opening a new office in Bengaluru. The company has listed 41 job openings in Bengaluru, with positions available for software engineers, machine learning engineers, and hardware engineers. The tech giant is also seeking an experienced engineering director to lead its India-based team.
Databricks, the data intelligence platform, is expanding its presence by focusing on Bengaluru’s AI and data science talent. “The Bangalore office is part of Databricks’ strategy to tap into India’s rich software industry and its abundant pool of world-class engineers,” said Sebastian Furtal, partner enablement and training lead for APJ at Databricks.
In the meantime, Rubrik, a leading cybersecurity firm, is establishing a new research and development centre alongside a global operations centre while recruiting talent from prestigious universities. Also, Morgan Stanley, the American investment banker, has constructed a vast 1.2-million-square-foot campus that can house 12,000 employees—bigger than certain headquarters in San Francisco
Semiconductor leader Arm is opening a second office, reinforcing India’s role in the chip industry. Ford Business Solutions also launched an office in Bengaluru.
“We predominantly opened the new office for high-tech, niche, and high-demand skills. We’re building more platforms that can support various digital capabilities—stuff around cybersecurity, DevSecOps, DevOps, and AI, all of which are in high demand,” said Mike Amend, chief enterprise technology officer at Ford.
Global investment firm Fidelity International doubled its Bengaluru office space to 50,000 square feet in January 2025, located at Manyata Tech Park.
The city boasts over 1,000 startups, including AI firms such as Sarvam AI and Krutrim, which are developing Indic foundational models. Both companies are actively recruiting for various job roles in AI.
Even South Park Commons, a prestigious founder community from San Francisco, has opened its third global office in Bengaluru, following New York.
The US government is also paying close attention to the city. It recently opened its consulate in Bengaluru, making it easier for businesses to collaborate across borders.
Why Brand Bengaluru?
In a conversation with AIM, former CFO and Board Member at Infosys, Mohandas Pai, explains why many companies are establishing their offices in Bengaluru.
“Bengaluru is home to 25 lakh technology professionals, making it the largest tech ecosystem in the world. In comparison, California has only 15 lakh tech professionals,” stated Pai.
He stated the city is affordable, offers competitive salaries, provides job opportunities for spouses, and facilitates pay hikes during job transitions better than any other city in India.
In comparing Bengaluru with Hyderabad and Chennai, he noted that Hyderabad has robust infrastructure as a financial hub. However, he remarked that Chennai suffers due to language (Hindi) animosity.
Traditionally, San Francisco has long been the go-to city for founders seeking to create the next big thing, and it is recognised as a hub for tech talent, investment, and trends. However, Bengaluru is swiftly emerging as the next major startup hub.
Nick Linck, a San Francisco-based startup entrepreneur, recently said, “Your startup’s runway can extend five times longer if you opt for Bengaluru instead of San Francisco.”
He noted that you can live and hire a cook for just $500 a month in Bengaluru, unlike San Francisco’s high costs. It’s no surprise that early founders are reconsidering their options.
Manufacturing and Industrial Growth
Outside of technology, Karnataka is emerging as a significant player in global manufacturing. At the recently concluded Invest Karnataka event, the state attracted investment commitments totalling nearly $115 billion. It also recorded the second-highest FDI inflow in India and is home to over 750 multinational corporations.
Volvo Group reportedly made a landmark ₹1,400 crore investment to expand its Hosakote manufacturing facility near Bengaluru. This expansion is poised to generate 2,000 direct jobs and increase production capacity to 20,000 units annually.
Also, the Mahindra Group outlined plans to invest approximately ₹40,000 crore to expand its footprint in Karnataka, particularly in renewable energy and electric vehicles.
Similarly, JSW Group committed ₹1.2 lakh crore toward increasing its steel production and setting up new facilities in the state.
Infrastructure Challenges and Growing Pains
The rapid expansion is putting pressure on Bengaluru’s infrastructure. Traffic congestion, bad roads, uncleared garbage, and lack of footpaths remain major concerns.
Pai recently criticised the state government and entered into a heated argument with IT/BT Minister Priyank Kharge. This altercation followed remarks from the city development minister and deputy chief minister DK Shivakumar, who stated that even God cannot fix Bengaluru’s roads.
🏆Bengaluru has the second-highest number of India’s most valuable companies.
— Priyank Kharge / ಪ್ರಿಯಾಂಕ್ ಖರ್ಗೆ (@PriyankKharge) February 24, 2025
🏆Bengaluru has the highest number of Fortune 500 companies in India (400).
🏆Bengaluru has the highest number of GCCs in India.
🏆Bengaluru has the highest number of Unicorn Startups (~48) and the… pic.twitter.com/avJOyqbuCo
Pai informed AIM that traffic congestion arises from individuals living far from their workplaces. “People ought to seek homes nearer to their workplace to reduce commute time significantly. Additionally, we also need better public transport,” Pai said. However, property prices in the vicinity of IT Parks and SEZs are excessively high for people to afford, and hence many prefer to buy properties in the outskirts.
Pai also stressed the need for improved metro connectivity, similar to that in other cities.
Presenting a solution in an interview with AIM, Sriram Kannan, Founder & CEO of Routematic, said that solutions like AI-driven traffic signals, mass transportation systems, and flexible work hours can help solve Bengaluru’s traffic woes.
“AI can determine high-frequency routes where mass transportation systems like metros and buses should be deployed,” he said, adding that AI can help redistribute traffic more evenly across existing infrastructure.
Bengaluru’s rapid growth is both an opportunity and a challenge. The city is attracting global investments, AI talent, and high-end manufacturing, but infrastructure development needs to keep pace.
