DiscoverIndia Tech Report: Daily Morning BriefThe power of eight: US and desi VCs team up for $1 billion India deep tech alliance
The power of eight: US and desi VCs team up for $1 billion India deep tech alliance

The power of eight: US and desi VCs team up for $1 billion India deep tech alliance

Update: 2025-09-03
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First Made-in-India chips as semiconductor mission accelerates

Prime Minister Narendra Modi received India’s first homegrown semiconductor chips at the opening of the Semicon India 2025 conference in New Delhi yesterday, marking rapid progress in the nation’s semiconductor mission, according to a government press release. Multiple MoUs were signed at the meet to boost manufacturing, skills, and innovation, according to the release. The government’s push includes talent development, global partnerships, and deep tech investment, positioning India as a future global leader in semiconductors.

 

US and Indian VCs unite for $1 billion deep tech alliance in India

Eight leading venture firms from the US and India have launched a $1 billion alliance to support India’s deep tech startups, pledging long-term capital and mentorship, according to multiple reports. The coalition will work with the Indian government to leverage new incentives, boost innovation, and strengthen cross-border tech ties despite ongoing geopolitical tensions.

 

Called the India Deep Tech Investment Alliance, the group brings together Celesta Capital, Accel, Blume Ventures, Gaja Capital, Ideaspring Capital, Premji Invest, Tenacity Ventures, and Venture Catalysts, TechCrunch reports, citing a joint statement from the firms. Each member will commit private capital over a 5-10-year period to India-domiciled deep tech startups, according to TechCrunch.

 

WisdomTree debuts quantum ETF as sector nears viability  

WisdomTree, a New York based global asset manager, has launched a Quantum Computing UCITS ETF as quantum information processing approaches commercial viability. The ETF allows investors broad access to quantum hardware and software leaders, focusing on sectors like drug discovery, climate science, and AI. WisdomTree asserts that with exponential advances in quantum mechanics, the fund enables early participation in what may soon be one of the most transformative technological frontiers.

 

Quantum computer modules snap together like LEGOs for scalable, high-fidelity systems

University of Illinois scientists have created a modular quantum processor—devices connect via superconducting cables and achieve ~99 percent operation fidelity, SciTech Daily reports. This architecture enables scalability, easier upgrades, and reconfigurability, overcoming limits of monolithic designs and paving the way for larger, fault-tolerant quantum computers and advanced quantum networks.

 

AI-driven drug discovery accelerates as FDA aims to cut animal testing

Pharmaceutical companies are rapidly adopting AI for drug discovery and safety testing, aligning with the US FDA’s initiative to reduce animal testing, Reuters reports. Experts say combining AI and reduced animal testing could halve both costs and timelines within three to five years, though animal studies will likely remain necessary for some drugs in the near term.

 

MIT develops self-assembling material to enable easily recyclable EV batteries

MIT researchers have created a battery electrolyte that self-assembles and quickly dissolves in common organic liquids, allowing entire batteries to be taken apart for recycling, according to a news post on the institute’s website. Tested in solid-state cells, the material simplifies sorting of battery components and could make recycling easier and cleaner, addressing future electronic waste from the rise of electric vehicles.

Musk predicts Optimus humanoid will drive 80 percent of Tesla’s value

Elon Musk recently stated that Tesla’s future value will depend far more on its Optimus humanoid robots than on its electric cars, predicting that up to 80 percent of Tesla’s worth will derive from Optimus, CNBC reports. The company’s new strategy focuses on robotics and AI, with plans to produce 5,000 Optimus units in 2025 and target a $20,000–$30,000 price point. Musk envisions Optimus becoming core to Tesla’s operations and the global robotics market, despite continuing technical and adoption challenges.

Sixty percent of Earth’s land is now outside safe biosphere limits

A new study finds that 60 percent of the world’s land is beyond safe biosphere boundaries due to expanding human use of biomass, SciTech Daily reports. The research tracks changes since 1600, showing Europe, Asia, and North America are most affected. Scientists urge global action as ecological disruption, land conversion, and declining photosynthetic activity raise risks for planetary stability.

 

For in-depth conversations with founders, investors, industry leaders and other stakeholders building India’s deep tech and climate tech ecosystems, please listen to my India Tech Report: In Conversation podcast.

 

To support my work, please subscribe to my posts at India Tech Report, if you’d like to get all these in one place.

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The power of eight: US and desi VCs team up for $1 billion India deep tech alliance

The power of eight: US and desi VCs team up for $1 billion India deep tech alliance

Hari Arakali