A Rs 50 crore Vetri Tamil Nadu Deep-Tech Innovation Fund is announced, with a quarter reserved for SC/ST founders.

What the fund covers

The fund is meant for work in AI and machine learning, large and small language models, advanced materials, semiconductors and robotics.

Minister R Kumar said it will give "targeted support to deep-tech startups, researchers, innovators, and PhD scholars." The state says the 25% share for SC/ST founders is there to make growth more inclusive.

Other AI plans announced with it

The fund was one of several plans presented under the Department of Artificial Intelligence, Information Technology and Digital Services. They include Rs 20 crore for Vetri Tamil Nadu AI Centres of Excellence, run through ELCOT, and Rs 10 crore for a government-owned GPU computing cluster that will offer AI services to entrepreneurs.

The state also plans AI models for its health and agriculture programmes, an AI-enabled Tamil Internet Language Lab, and a Rs 5 crore Vetri Tamil Nadu Super App giving mobile access to about 500 government services.

A proposed AI Technology City would bring together an AI university, skill-development facilities, semiconductor testing labs and incubators. No cost or timeline was given for it.

What is not known yet

YourStory does not say how to apply, what the full eligibility rules are, or when the fund will open. In September 2026, The Week still described it as a proposed fund with an initial corpus of Rs 50 crore.

The Week also reported that the state's existing SC/ST startup fund has given Rs 60 crore to more than 40 companies.