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.

Lenovo Group Ltd. started building AI servers in India’s south, the latest boon for the rapidly growing country’s push to become a high-tech powerhouse.

India’s second largest PC maker’s bid to manufacture servers in India comes on the back of a three-year $1-billion investment in AI announced last year to develop AI platforms, computing devices and servers.

PC maker Lenovo India will start manufacturing 50,000 GPU-based AI servers in India next year, the company said on Tuesday. Lenovo India Managing Director Shailendra Katiyal said that the company will make servers locally and also export them from its manufacturing unit in Puducherry.

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