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.

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

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

In this news analysis, features, Lenovo's significant investment in AI and infrastructure in India its commits to driving the country's digital transformation.

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.

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.

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

The plant will be making three rack-mounted enterprise AI servers and two flagship 8-way GPU servers. These advanced servers, featuring, are specifically designed for AI workloads

While India’s tech manufacturing sector is still small compared with China, it now makes increasingly sophisticated products such as iPhones.