**upGrad Launches AI Incubator with ₹100 Crore Budget to Foster Innovation**
upGrad co-founder Ronnie Screwvala has announced the establishment of an artificial intelligence incubator aimed at attracting top talent in the AI sector to drive innovation and disruption. The company has allocated ₹100 crore to support local startups focused on AI applications, without seeking external funding for the initiative.
Screwvala emphasized that the incubator’s goal is to create a unique talent pool capable of functioning as both investors and entrepreneurs. He described the funding as part of their growth investment strategy, clarifying that it may impact their profit and loss statement rather than being classified as capital expenditure.
The move aligns with a broader trend among late-stage tech companies establishing their own incubator programs to remain connected to the startup ecosystem. Other companies, such as PhysicsWallah and Games24X7, have also launched incubators to assist emerging startups.
Screwvala acknowledged the challenges faced by early-stage startups, particularly in securing funding, and expressed a desire to provide a supportive environment for innovation. However, he cautioned that the current funding landscape may lead to a high failure rate, predicting that “99 out of 100 people rushing into AI will fail.” He noted that venture capitalists often fund numerous startups, knowing that only a few will succeed, which creates immense pressure on these companies.
Currently, upGrad has no plans to increase the ₹100 crore budget for the incubator. Screwvala anticipates that the investment will yield returns within three years, suggesting that traditional revenue models for incubators may become less significant in the future. He highlighted that disruption, technology, and consumer insights will be crucial moving forward.